Texas halts power grid connections for new data centers
Texas Governor Greg Abbott has ordered state regulators, ERCOT and the Public Utility Commission, to pause power grid approvals for new data centers until a comprehensive audit of their power and water usage is completed. This decision comes amidst growing public opposition to data centers across the state, citing concerns about grid strain, noise, traffic, and neighborhood impacts. Fort Worth city council members have also requested a temporary moratorium on new data centers.
Texas Governor Greg Abbott has directed the state's grid managers, ERCOT, and the Public Utility Commission (PUC) to audit all proposed data centers before they can connect to the state's power grid. This move represents a shift in the governor's stance on data center development, following increased public opposition and concerns about the state's electricity and water resources.
Abbott emphasized that any artificial intelligence (AI) data center considering Texas must provide its own power and water infrastructure, and operate in a way that reduces electricity costs for residents. This directive is in response to ERCOT's forecasts indicating a doubling of demand on the state's power grid within the next five years, with data centers projected to be a significant contributor to this growth.
The governor's order also seeks information on potential impacts such as noise, traffic, and effects on neighborhoods, as well as details on project ownership. This policy change has drawn criticism from his Democratic opponent, Gina Hinojosa, who highlighted Abbott's previous efforts to brand Texas as an AI development hub. The issue of data center development continues to be a contentious topic, with residents in cities like Keller expressing frustrations over proposed projects in areas like Westlake, and Fort Worth city council members advocating for a temporary moratorium on new data centers.