Abbott orders Texas data centers audit, halts grid connections
Texas Governor Greg Abbott has ordered a comprehensive audit of all data centers seeking to connect to the Texas grid, effectively pausing new projects until the review is complete. This statewide directive aims to ensure data centers meet state requirements, including self-sufficiency in power and water, and mitigate impacts on communities. Any non-compliant project will be denied grid connection, following public concerns that led to one Henderson County data center withdrawing its plans.
Texas Governor Greg Abbott has issued an executive order mandating a comprehensive audit of all data centers seeking interconnection to the state's power grid, effectively pausing new data center projects until the review is complete. The directive tasks the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) with verifying that projects comply with state requirements.
Governor Abbott emphasized that the primary goal is to protect Texans' safety and quality of life, stating that any non-compliant project will be denied grid connection. The audit will collect information from each data center project, including how they plan to supply power, their reliance on ERCOT, water provision and reuse, and measures to reduce impacts on neighboring communities and property owners. This order expands upon a previous June 10 directive aimed at safeguarding residential ratepayers from potential costs associated with data center development.
Furthermore, Abbott had previously called for a ban on AI data centers in rural Texas neighborhoods due to resident concerns over community and water supply impacts. Following this demand, a proposed data center in Henderson County withdrew its development plans, a move celebrated by local officials and the Governor. PUCT Chairman Thomas Gleeson affirmed the commission's commitment to implementing the Governor's directives.