Gov. Abbott halts new Texas data center grid approvals pending state audit
Texas Governor Greg Abbott has halted approvals for new data centers seeking to connect to the state's power grid, pending a comprehensive audit by the Public Utility Commission and ERCOT. The audit will assess power and water usage, community impacts, and financial contributions of these projects. This decision comes amidst growing public opposition to data centers across the state, including successful efforts by communities like Cedar Creek Lake to block proposed projects.
Texas Governor Greg Abbott has issued a directive halting approvals for new data center connections to the state's power grid. The governor cited that 90% of new connection requests are from data centers and mandated that the Public Utility Commission (PUC) and ERCOT conduct a comprehensive audit of all data center projects seeking grid access. This audit will evaluate projects' financial contributions, their anticipated power and water consumption, and measures taken to mitigate impacts like noise, light, and traffic on neighboring communities. Projects failing to meet state requirements will be denied grid connection.
The executive order follows widespread protests and opposition to data center developments across Texas. Casey Watson, director of Save Cedar Creek Lake, highlighted how community organizing, including peaceful demonstrations, contributed to the withdrawal of a proposed hyperscale data center project in their area. Watson and other advocates are pushing for a full statewide moratorium and the establishment of robust statewide ordinances to regulate future data center projects.
State Representative Joanne Schaffner expressed support for the governor's action, emphasizing the need for Texas to proactively safeguard communities, water resources, and electrical grid reliability, urging the industry to be "a good neighbor." However, some, like Casey Watson, believe Governor Abbott is "playing both sides" by not imposing a full moratorium.
Gina Hinojosa, the Democratic nominee for Texas governor, criticized Abbott's directive as insufficient, advocating for a complete moratorium until the legislature can enact "real protections for Texans" and involve communities in decisions regarding data center development.