Texas Governor Abbott halts new data center grid connections pending statewide audit; 474GW interconnection queue frozen

Texas Gov. Greg Abbott has ordered state regulators to audit pending data center projects seeking connections to the state's electric grid. The Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) will review pending applications and deny grid connections for facilities failing to meet state requirements.

ERCOT stated that the governor's directive "effectively pauses all data center projects" and confirmed it is reviewing Abbott's letter and will work with the Public Utility Commission to implement the directive, including postponement of the Batch Zero transmission planning study.

The action reflects Texas's surge in artificial intelligence and cloud computing demand. ERCOT reports that approximately 90% of the 474 gigawatts of projected large-load interconnection requests currently under review are from data centers—more than five times the state's record peak electricity demand.

"Our top priority is to protect Texans' safety and quality of life," Abbott said in a statement. "Texans must come first."

As part of the review, Abbott directed regulators to collect additional information from companies seeking grid connections, including whether facilities plan to generate their own electricity, along with their projected annual and peak electricity demand, water consumption, and water sources.

The directive represents Abbott's continued effort to tighten oversight of the expanding data center industry. Last week, he stated that AI data centers looking to build in Texas should bring their own power, reuse their own water, and lower electricity costs for residents.

Texas has become one of the nation's largest data center development hubs, partly due to generous tax incentives. The state provides more than $1 billion annually in tax breaks for qualifying projects.

Public Utility Commission of Texas Chairman Thomas Gleeson said the agency is working with ERCOT to implement Abbott's directive. "We appreciate Gov. Abbott's directive and will continue to work closely with ERCOT to ensure these requirements, along with those laid out in our July 17, 2026, letter to Gov. Abbott, are fully carried out on behalf of the people of Texas," Gleeson said.