ERCOT says governor’s data center audit could take months to complete

Texas energy regulators, including the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT), announced that an audit of data centers, ordered by Governor Greg Abbott, could take several months to complete. Earlier this month, Governor Abbott directed ERCOT and PUCT to pause approvals for new data centers while they conduct a comprehensive review of existing projects. This directive impacts a significant backlog of data centers seeking to connect to the Texas power grid, with about 90% of requests for 474 gigawatts of power coming from data centers.

During a recent meeting, Texas energy regulators outlined their preliminary plans for evaluating data centers' community impact, including their water technology and power deliverability. ERCOT Senior Vice President Chad Seely emphasized that this information will provide the state with a better perspective as these loads integrate into the grid. The audit will require agencies to collect data on new data centers' energy and water consumption, government assistance, tax incentives, ownership, and local community impact.

The governor's moratorium does not apply to data centers already approved to connect, those using their own power generation, or those outside the ERCOT grid. ERCOT plans to begin the audit by sending information requests to 250 to 300 large energy consumers qualified for "Batch Zero," their new streamlined process for grid connection. This audit has delayed the Batch Zero evaluation, which was initially expected to be completed by April. While ERCOT does not yet know the exact duration of the audit or its impact on timelines, PUCT Commissioner Courtney Hjaltman stated that the audit's length depends on how quickly developers provide the requested information. The agency is also delaying its long-term energy forecast, which previously projected a quadrupling of the state's energy demand by 2032.