Texas officials propose data center moratorium, audit grid connections amid opposition to transmission lines

Texas is facing a burgeoning debate over the rapid proliferation of data centers, driven by the artificial intelligence boom, and their impact on the state's power grid and natural resources. Texas Agriculture Commissioner Sid Miller has publicly called for a one-year moratorium on data center construction, arguing for the need to establish clearer guardrails and oversight for the industry. He voiced his concerns at a packed town hall in Bastrop on July 22, stating that lawmakers need to address the issue.

In response to the growing concerns, Governor Greg Abbott has directed Texas energy regulators to conduct a comprehensive audit of all data center projects seeking to connect to the state’s power grid. Abbott emphasized that no project should proceed without full compliance with requirements set by the Public Utility Commission of Texas (PUCT) and ERCOT, prioritizing Texans' safety and quality of life. The governor's office noted that approximately 90% of the 474 gigawatts in connection requests currently under ERCOT's consideration originate from data center projects. Abbott has also established clear guidelines for data centers, including requirements to invest their own money, provide their own power, reuse water, ensure grid stability, and avoid disturbing neighborhoods.

Adding to the pressure, dozens of landowners from across Texas convened at the Capitol, urging Governor Abbott to call a special legislative session to halt proposed 765-kilovolt transmission lines. These lines are intended to support the energy demands of new data centers and would cross private property throughout the state. The rally coincided with a Texas House Committee on State Affairs hearing on data centers and transmission lines, where opponents planned to provide public testimony. Texas senators and Lt. Gov. Dan Patrick have also called on the PUCT to delay action on certain transmission line applications for further legislative review. Landowners and advocacy groups, such as the Hill Country Land and Legacy Alliance and Texas Right to Know, have voiced strong opposition, demanding immediate action to protect their property and the environment.