Texas Governor Greg Abbott halts data center approvals pending audits

Governor Greg Abbott ordered the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive verification and audit of every data‑center project seeking connection to the state electric grid. Projects that do not satisfy the audit requirements – covering tax incentives, projected power and water use, community impact, and ownership details – will be denied grid access.

Abbott said the move is intended to protect Texans’ safety and quality of life as data‑center requests now represent about 90% of the 474 GW of new power capacity in ERCOT’s interconnection queue, more than five times the state’s historic peak demand. Texas is the nation’s second‑largest data‑center market, with roughly 335 facilities operating and at least 248 more planned.

The governor warned that unchecked growth could jeopardize grid reliability and pledged to work with the legislature to codify stronger protections for ratepayers and local communities.