Texas Governor Abbott halts all new data center power-grid connections pending statewide audit, citing grid capacity and water supply strain.

Texas Gov. Greg Abbott has issued a temporary halt to new data center grid connections, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) on Monday, Aug. 3, to conduct a comprehensive verification and audit of all data centers advancing through ERCOT's interconnection process. "Our top priority is to protect Texans' safety and quality of life," Abbott said in a statement. "Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first."

The scope of pending requests is extraordinary. ERCOT is currently considering approximately 474 gigawatts of requests to connect to the Texas grid—more than five times ERCOT's record peak demand. Data centers account for roughly 90% of these new power requests. Abbott's office has warned that this unprecedented load growth could threaten the reliability and stability of the Texas electric grid.

The action builds on a June 10 directive in which Abbott ordered the PUCT and ERCOT to collect water and power usage information from data center projects and to take steps protecting residential ratepayers from the costs of data center expansion. Public sentiment has become increasingly skeptical of the expansion. A University of Texas and Texas Politics Project poll released June 24 found that 56% of Texas registered voters oppose data center construction in their communities, with 42% strongly opposed.

Local governments have pursued their own restrictions. San Marcos City Council adopted a new ordinance on June 16 amending zoning rules to effectively ban data center development, citing concerns about strain on water and energy resources. Hill County leaders passed a moratorium on data centers in June, though it was rescinded after a developer sued the county for $100 million. Hood County also implemented a moratorium but withdrew it after a Texas state senator requested an attorney general's opinion on whether counties could legally impose such restrictions.

Texas has 335 existing data centers, with at least 248 more in development as of June 26, according to the Texas Tribune. Texas Agriculture Commissioner Sid Miller has escalated pressure on Abbott, renewing his call on July 24 for a special legislative session to address concerns about data centers. Miller first made this request on July 7, warning that continued inaction threatens Texas agriculture, rural communities, and the state's electric grid. "The governor has called special sessions over issues he believes are urgent. If protecting the land that feeds America, safeguarding our electric grid, and preserving Texas' water supply aren't urgent, I don't know what is," Miller said. "Texas can build more power plants and transmission lines, but we can't manufacture water. Water is the lifeblood of Texas agriculture, and once it's gone, it's gone."

Miller also criticized Abbott's July 23 claims that the withdrawal of a proposed East Texas data center demonstrated that his policies are working. Abbott has previously stated that he plans to work with the 90th Texas Legislature, convening in January 2027, to regulate the industry. In the interim, Abbott directed state regulators to require data centers to fully fund the costs of the electric infrastructure needed to serve their operations.