Data center approvals in Texas halted until audits completed, Gov. Greg Abbott says
Summary
Texas Governor Greg Abbott has stopped new approvals for data centers until state agencies audit proposed projects that want to connect to the electric grid. The review will check things like power use, tax breaks, water use, and local impact to ensure projects meet state laws and protect residents.Key Facts
- Governor Greg Abbott issued a moratorium on approving new data centers connecting to Texas’ electric grid.
- The audit will be done by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT).
- The review will cover tax breaks, electricity use, water and cooling operations, community impact, and data center ownership.
- ERCOT currently has over 1,800 projects waiting to connect, mostly data centers, requesting more power than the grid’s record peak demand.
- Existing reviews called “batch zero” are on pause due to Abbott’s order.
- Texas is the second largest state for data centers and may become number one soon.
- Some data centers avoid the grid by building their own power sources on-site.
- The audit’s duration and whether it covers all projects in the queue are not yet clear.
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