Gov. Abbott directs comprehensive data center audit

Governor Greg Abbott has issued a directive ordering the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a thorough verification and audit of all data center projects currently progressing through ERCOT's interconnection process. This audit is mandated for completion before any data center project can advance, with the Governor stating that any project failing to meet the requirements set forth by PUCT, ERCOT, and state law will be denied connection to the Texas grid.

The directive, building on a previous order from June 10, stems from concerns over unprecedented load growth, with ERCOT currently reviewing over 474 gigawatts of connection requests, approximately 90% of which are from data centers. This surge in demand is seen as a potential threat to the reliability and stability of the state's electric grid. Governor Abbott emphasized that "Texans must come first" in prioritizing safety and quality of life.

The audit will require each data center project to provide detailed information across several critical areas. This includes the extent of state and local financial assistance received, their reliance on the ERCOT grid versus on-site power generation, projected annual and peak electricity consumption, and efforts to reduce grid demand. Furthermore, projects must disclose their projected annual and peak water consumption, anticipated water sources, and the cooling technologies employed, focusing on water-efficient systems.

Finally, the audit will assess measures taken to mitigate impacts on neighboring communities, such as noise, light controls, setbacks, traffic improvements, and emergency response coordination. Information detailing the ownership and controlling interests of each project must also be provided.