US state governor orders audit and pauses new datacenter grid connections pending review
Governor Greg Abbott has ordered a comprehensive audit of all data center projects seeking to connect to the Texas power grid, effectively pausing new projects until the review is complete. In a directive issued Monday, Abbott instructed the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to verify every data center currently advancing through ERCOT's interconnection process. No project will be permitted to move forward until the audit is completed, and any project failing to meet state requirements will be denied access to the Texas electric grid.
"Texans must come first," Abbott said, emphasizing that protecting the reliability of the state's electric grid and the quality of life for residents remains his top priority.
According to the governor's office, ERCOT is currently reviewing requests totaling more than 474 gigawatts of new electric demand—more than five times the state's record peak electricity demand. State officials indicate that roughly 90 percent of those requests are tied to data center developments.
The audit will require developers to disclose whether they are relying on state or local tax incentives or other public financial assistance, how much electricity and water their facilities are expected to consume, whether they plan to generate power on-site, and what steps they are taking to reduce impacts on surrounding communities. The review will also require information about project ownership and controlling interests.
The announcement comes as several large-scale data center projects have been proposed across Texas, including at least two developments planned for Guadalupe County. These projects have drawn criticism from some residents over concerns about power demand, water consumption, and tax incentives. The governor's order means no data center project currently in ERCOT's interconnection queue can advance until the audit is complete. It remains unclear whether the order would affect the proposed projects in Guadalupe County.