Data center approvals in Texas on hold as Abbott calls for audit
Texas Governor Greg Abbott has ordered state regulators to audit all data center projects seeking grid connection before construction can proceed, effectively pausing new developments. This action comes amidst community backlash and concerns about the state's power grid reliability due to the unprecedented growth of data centers. The audit will gather information on tax breaks, power and water usage, and ownership to ensure compliance with state law.
Texas Governor Greg Abbott has mandated a comprehensive audit of all data center projects slated for connection to the state's power grid, a move that places a temporary halt on new data center developments. The order, issued on Monday, requires the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to verify all projects in ERCOT's interconnection process before they can proceed. The timeline for this audit was not specified.
The governor's directive follows growing community opposition to the data center boom across Texas, with some municipalities enacting their own moratoriums on such industrial developments. Abbott emphasized that the audit's priority is to safeguard Texans' safety and quality of life, stating that any project failing to meet state and regulatory requirements will be denied grid connection. Information sought from developers includes details on tax breaks, annual power and water consumption, and facility ownership.
ERCOT, which manages the Texas power grid, has already faced record-breaking demand, with a peak of 91.1 gigawatts recorded in July 2026, surpassing previous records. The agency currently has requests totaling 474 GW from large load users, approximately 90% of which are from data centers. State officials have expressed concerns that this rapid load growth could compromise the grid's reliability and stability. ERCOT is already implementing a new "batch zero" process to study large electric users, including data centers and crypto miners, to manage this growth more effectively.