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Texas pauses new data centers pending audits

Texas Governor Greg Abbott has paused new data center development until audits by state regulators are completed, as grid connection requests have surged.

  • Governor Greg Abbott announced Monday that all new data center projects will be audited by the Public Utility Commission of Texas and ERCOT.
  • ERCOT is tracking 474 gigawatts of new connection requests, about 90% of which are data centers.
  • The interconnection queue represents more than five times ERCOT's total peak demand.

Texas Governor Greg Abbott has halted new data center development until audits are completed, according to an announcement on Monday. All new projects will be reviewed by the Public Utility Commission of Texas and the state's grid operator, ERCOT.

The move follows a sharp rise in grid connection requests. ERCOT's interconnection queue grew from 233 gigawatts in January to 474 gigawatts by early August, with about 90% of those requests attributed to data centers.

Abbott has directed regulators to collect information on proposed data centers, including electricity and water demand, noise mitigation, light controls, tax incentives and ownership details. The governor had previously tried a voluntary survey, but most developers did not respond.

Officials have warned that even a fraction of the proposed projects could overwhelm the grid, as the queue represents more than five times ERCOT's peak demand.

Why this matters: The pause signals a shift in Texas's traditionally light-touch regulatory approach to development, potentially affecting the state's status as a leading data center hub.

What this means for you: If you are involved in data center development in Texas, new projects will face delays pending audits.

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