Gov. Abbott calls for data center audits

News Clip0:36KCENNews·TX·8/4/2026

Texas Governor Greg Abbott has issued a memorandum placing a hold on new data centers connecting to the state's electric grid. The Public Utility Commission of Texas (PUC) is tasked with auditing all data centers seeking grid access. Those failing to meet audit requirements, including demonstrating energy reduction and community harm mitigation, will be denied access.

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Gov: Governor Abbott, PUC of Texas

Texas Governor Greg Abbott has issued a new memorandum placing an immediate hold on new data centers seeking to connect to the state's electric grid. The Governor has ordered the Public Utility Commission (PUC) of Texas to conduct an audit of all such data centers.

To pass this audit, data centers will be required to disclose any tax breaks they have been awarded, detail steps taken to reduce energy consumption, outline measures to mitigate harm to local communities, and provide information on project ownership. This initiative follows a previous directive from Governor Abbott in June, which aimed to protect Texas residents from potential increases in electricity costs due to new data center development.

Data centers that fail to meet the audit's requirements will not be granted access to the Texas electric grid.