Texas Pauses Data Center Connections Pending State Audits

WHO:

The Texas Tribune - Governor Greg Abbott ordered the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct audits of data centers.

The Texas Tribune - The Data Center Coalition, a trade group representing large tech companies, expressed hope for responsible development.

WHAT:

The Texas Tribune - Texas has halted the approval of data center grid connections until audits are performed.

The Texas Tribune - There are over 1,800 projects in the ERCOT interconnection queue, representing more than 474 gigawatts of electricity.

The Texas Tribune - Approximately 90% of new power requests in Texas are from data centers.

The Texas Tribune - Abbott stated, “Our top priority is to protect Texans’ safety and quality of life.”

The Texas Tribune - Abbott's directive requires comprehensive verification and audit of data centers before they can connect to the grid.

WHERE:

The Texas Tribune - The audits pertain to data centers seeking connection to the Texas electric grid, specifically within the ERCOT region.

WHEN:

The Texas Tribune - Abbott's letter to the PUCT and ERCOT directs them to conduct the audit on all data centers advancing through ERCOT’s interconnection queue.

The Texas Tribune - A report on the data collected from the PUCT's survey is due to be submitted to the governor and the Legislative Budget Board by the end of the year.

WHY:

The Texas Tribune - The moratorium is a response to public backlash regarding the rapid buildout of data centers and a lack of transparency about their operations.

The Texas Tribune - Abbott cited failures of some data centers to comply with a recent PUCT survey on water and power usage as a reason for the audit.

HOW:

The Texas Tribune - The audit will require data center developers to provide information on tax breaks, power and water use, cooling operations, and community impact.

The Texas Tribune - ERCOT is currently conducting a review of some projects in the queue through a process known as “batch zero,” which has been paused following Abbott's directive.

(UPDATED August 4, 2026 04:14 UTC)

Governor Greg Abbott has ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct audits of data centers, halting the approval of new grid connections until these audits are completed. This decision comes in response to public concerns about the rapid expansion of data centers, which account for approximately 90% of new power requests in Texas, and Abbott emphasized the need to protect Texans' safety and quality of life. A report detailing the findings from the audits is expected to be submitted to the governor and the Legislative Budget Board by the end of the year.