Texas Governor Greg Abbott orders PUCT and ERCOT to halt new data center grid connections pending infrastructure audit
Texas Governor Greg Abbott has ordered state energy regulators to halt approvals for all new data center projects seeking to connect to the Texas power grid until a comprehensive audit and verification process is completed. In a directive to the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT), Abbott stated that projects failing to comply with requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid.
The pause comes as ERCOT evaluates approximately 474 gigawatts in grid connection requests—more than five times Texas's record peak electricity demand. About 90% of those requests originate from data centers. The directive, sent Monday to PUCT Chairman Thomas Gleeson and ERCOT CEO Pablo Vegas, calls for officials to collect additional information to maintain grid stability, though no official timeline for completing the audit has been announced.
Abbott's letter requires data centers to report comprehensive information to ERCOT and the PUC, including proposed water use, tax breaks received, cooling technologies deployed, and ownership details. The audit must also collect details on noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination, and other community protection measures, along with controlling interests. Additionally, data centers must disclose projected power consumption and provide documentation of steps to reduce reliance on the Texas power grid, including any on-site electric plants used to power the facilities.
No additional data center connections can be approved or move forward until the audit process occurs. ERCOT said it would review the directive and work with the Public Utility Commission to implement it, including postponement of the Batch Zero transmission planning study. ERCOT had planned to notify data centers about Batch Zero qualification this week and provide power allocation amounts by spring 2027, but that timeline is now on hold pending consultation with the PUC.
Democratic nominee Gina Hinojosa criticized the measure as insufficient, characterizing it as potentially a temporary "pause" rather than a genuine moratorium. "The people of Texas are being taken advantage of, in a big way, by corporations who are operating under no rules," Hinojosa said in a statement Monday, calling on Abbott to sign an emergency executive order establishing a moratorium on data centers until the Texas Legislature reconvenes.