Texas Governor Greg Abbott Pauses All New Data Center Construction in the State
Texas Governor Greg Abbott has ordered a pause on all new data center construction in the state. This pause is pending audits by ERCOT and PUCT to address concerns over the lack of transparency regarding data centers' water and power usage. The audit will focus on data centers advancing through ERCOT's interconnection queue.
Texas Governor Greg Abbott has implemented a statewide pause on all new data center construction until comprehensive audits are completed by the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT). The Governor's office cited a lack of transparency regarding the water and power consumption of certain data centers as the primary reason for this directive.
The decision comes amidst a significant boom in data center development within Texas, with 140 facilities currently under construction and an additional 610 announced. Abbott's letter instructs ERCOT and PUCT to audit all data centers progressing through ERCOT's interconnection queue, which is the process for energy-intensive projects seeking to connect to the state's electric grid. This measure aims to gather necessary information before further expansion. Only 28 of 377 companies surveyed by the state had responded, highlighting the transparency issues prompting the pause.