Texas Governor Greg Abbott has ordered a temporary halt on new data center projects seeking to connect to the state's electric grid. The directive requires the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct a comprehensive audit of all proposed facilities currently in the interconnection queue. This move aims to ensure that the rapid expansion of energy-intensive data centers does not compromise the reliability or stability of the state's power supply.
The decision follows mounting public and political pressure regarding the massive electricity and water demands of these projects. According to the governor, the Electric Reliability Council of Texas is currently evaluating approximately 474 gigawatts of new power requests, with roughly 90 percent associated with data centers. This total represents more than five times the state's record peak electricity demand, raising significant concerns about the potential strain on infrastructure.
Under the new order, developers must provide detailed information to regulators, including their expected power and water consumption, on-site generation plans, tax incentives received, and ownership structures. Any project that fails to meet these requirements or comply with the audit process will be denied connection to the Texas grid. The governor emphasized that the primary goal is to prioritize the safety and quality of life for Texas residents.
While the duration of the audit remains unclear, the directive has immediate practical consequences for the industry. The Electric Reliability Council of Texas has already announced it will postpone its current transmission planning study, known as "Batch Zero," to focus on the governor's mandate. This pause marks a significant shift in state policy, moving from an era of rapid, largely unchecked growth to one of increased regulatory scrutiny and oversight.