Texas pauses data center approvals for power grid audit

Texas has paused new data center approvals as regulators conduct a comprehensive audit of projects competing for space on the state's power grid. Following a directive from Governor Greg Abbott, the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT) are reviewing projects within the Batch Zero study.

The audit is expected to cover between 250 and 300 projects, the majority of which are data centers. These projects represent approximately 200GW of future demand, more than double ERCOT’s previous peak demand record. The goal of the audit is to ensure compliance with state law and regulatory requirements to build certainty in the interconnection process.

At the local level, tensions regarding energy-intensive facilities continue to rise. In Hill County, Texas, officials rescinded a one-year ban on data centers after a developer filed a lawsuit claiming the county lacked the authority to impose such a prohibition. These legal challenges reflect a growing national debate over the ability of local governments to restrict data center development due to concerns over electricity consumption, water usage, and utility costs.