Abbott orders audits of data centers seeking Texas grid connections
Texas Governor Greg Abbott has directed the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to audit all data center projects seeking connections to the state's power grid. This directive requires projects to disclose tax incentives and other details, with non-compliant projects denied grid access. The move addresses concerns about the stability of the Texas electric grid, which faces requests for more than five times its record peak electricity demand, 90% of which come from proposed data centers.
Texas Governor Greg Abbott has issued a directive ordering mandatory audits for all data center projects seeking to connect to the state's electricity grid. The order, sent to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT), mandates that any data center project failing to comply with the audit requirements will be denied access to the state's power infrastructure.
The audit process will require data center projects to disclose specific information, including any tax incentives or abatements received from state and local governments. Governor Abbott cited concerns over the reliability and stability of the Texas electric grid, noting that ERCOT is currently evaluating requests for over 470 gigawatts of connections, with 90% of this demand originating from proposed data centers. This level of demand is more than five times the state's record peak electricity consumption.
The directive comes shortly before a scheduled Brazos County Commissioners Court meeting, where commissioners are slated to vote on a potential tax abatement for a data center at the RELLIS Campus. Abbott's order specifically emphasizes the disclosure of such incentives.