Gov. Abbott orders data center audit before grid connection approval
Governor Greg Abbott has ordered a comprehensive audit of all data centers seeking connection to the Texas power grid. This audit, mandated before any new projects can be approved, requires data centers to disclose financial details, power and water usage plans, community impact, and ownership. The move aims to address the high demand on the grid, with data centers accounting for 90% of current connection requests.
Governor Greg Abbott has mandated a comprehensive audit for all data centers seeking connection to the Texas power grid, requiring state regulators to complete this review before any new projects are approved. This executive order comes as the Electric Reliability Council of Texas (ERCOT) faces connection requests totaling over 474 gigawatts, approximately five times the state's record peak electricity demand, with data centers accounting for about 90% of these requests.
Governor Abbott emphasized that the state's top priority is to "protect Texans' safety and quality of life," asserting that "Texans must come first." The audit requires data centers to provide detailed disclosures, including financial assistance received, plans for power sourcing, water usage, community impact measures, and ownership information. Projects that fail to meet these requirements will be denied access to the state's electricity grid, effectively pausing their advancement through ERCOT's interconnection process.