Texas pumps brakes on data centers as audit is conducted
Governor Greg Abbott has ordered a statewide pause on data centers seeking to connect to Texas's power grid, pending an audit of their impact on power, water, and communities. This directive has placed numerous data center projects, including a proposed Pacifico Energy development in Bastrop County, in limbo. Local residents and advocacy groups in Bastrop County are actively opposing data center developments.
Texas Governor Greg Abbott has issued a directive ordering a temporary pause on all data centers intending to connect to the state's power grid. This pause is in effect until the Public Utility Commission (PUCT) and the Electric Reliability Council of Texas (ERCOT) conduct a comprehensive audit. The audit aims to assess various impacts, including the developers' tax incentives, estimated water and power consumption, and the implications for surrounding communities.
The governor's order has left more than 250 planned data center projects statewide in limbo. In Bastrop County, where numerous data center proposals are under review, the League of Independent Voters of Texas, founded by Linda Curtis, is actively opposing developments. Curtis specifically cited a project by Pacifico Energy, currently under review by county leaders, as a cause for local concern. Pacifico Energy issued a statement supporting Governor Abbott's efforts and expressed willingness to cooperate with state agencies.
Governor Abbott highlighted that approximately 90% of new power grid connection requests come from data centers. He emphasized during a campaign stop in Round Rock that data centers should provide their own power, be additive to the grid, reduce electricity costs for existing residents, and reuse their own water resources. The Data Center Coalition, an industry lobbying group, expressed hope that the audit would distinguish responsible water and energy stewards and urged the PUCT and ERCOT to act swiftly. Despite the audit, construction on at least one data center in Bastrop County was observed to be ongoing shortly after the governor's announcement, with no clear timeline for the audit's completion.