Texas halts data center approvals pending audit of 2,000 projects
Governor Greg Abbott has announced a moratorium on new data center approvals in Texas, pending a comprehensive audit by state regulators. The audit will scrutinize nearly 2,000 proposed data centers seeking connection to the state's electric grid, focusing on tax breaks, power and water usage, and community impact. Projects failing the audit will be denied grid connection.
Texas Governor Greg Abbott has issued an order halting the approval of all new data centers seeking connection to the state's electric grid, pending a comprehensive audit by regulatory agencies. The directive, announced Monday, comes amid growing public concern over the rapid expansion of data centers across Texas.
Abbott has instructed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit nearly 2,000 proposed data center projects in the interconnection queue. This audit will require developers to provide detailed information on anticipated tax breaks, power and water consumption, cooling operations, efforts to mitigate local impacts, and facility ownership. The Governor stated that any project failing this "comprehensive verification and audit" should be denied grid connection, emphasizing the priority of protecting Texans' safety and quality of life.
The measure is the latest in a series of actions by Governor Abbott to increase regulation of the data center industry. In June, he directed the PUCT and ERCOT to mandate that data centers fully fund their electric infrastructure costs. PUCT Chair Thomas Gleeson has previously responded to Abbott, outlining ongoing efforts and calling for greater legislative authority to regulate the industry. ERCOT has already revised its approval process for large-load projects in the interconnection queue, and this new audit will postpone the "Batch Zero" transmission planning study that was underway.