Gov. Greg Abbott pauses new data centers until energy, water usage audit is completed
Texas Governor Greg Abbott has issued a directive requiring state regulators to pause new data center connections to the power grid until a comprehensive audit of their energy and water usage is completed. The directive also mandates collection of financial details, mitigation efforts, and ownership information for new projects. This action addresses growing public scrutiny and concerns about the impact of data centers on Texas's grid reliability and resources.
Texas Governor Greg Abbott has mandated a statewide halt on new data center connections to the power grid. In a directive issued to the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT), Governor Abbott called for a comprehensive audit of all new data centers' power and water consumption before they can integrate into the grid. The governor emphasized the priority of protecting Texans' safety, quality of life, affordable energy, and reliable electric grid, while also supporting economic development.
The audit requires data on project financing, projected power usage with mitigation efforts, water usage with reuse strategies, and community impact mitigation measures like noise control and traffic improvements. This move comes amidst increasing public and bipartisan scrutiny of data centers in Texas, the nation's fastest-growing market, regarding their energy demands and water use. ERCOT noted that data centers account for approximately 90% of the 474 gigawatts in large energy consumer requests, a figure more than five times the state's record demand.
PUCT Chairman Thomas Gleeson and ERCOT spokesperson Trudi Webster confirmed their agencies would comply with the governor's directive. As a result, ERCOT's "Batch Zero" transmission planning study, which was to evaluate initial data center energy allocations under new standards, has been postponed. Lawmakers and public officials, including Texas Agriculture Commissioner Sid Miller and Democratic gubernatorial candidate Gina Hinojosa, have also voiced criticisms regarding data center tax incentives and the industry's overall impact.