(Austin) — Governor Greg Abbott has ordered a comprehensive audit of all data center projects seeking to connect to the Texas power grid, effectively putting new projects on hold 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 allowed to move forward until the audit is completed, and any project that fails to meet state requirements will be denied access to the Texas electric grid.
“Texans must come first,” Abbott said, adding 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 say roughly 90 percent of those requests are tied to data center developments.
As part of the audit, developers will be required 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 data center developments planned for Guadalupe County. The projects have drawn criticism from some residents over concerns about power demand, water use 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’s not clear if the order would have any impact on the proposed projects in Guadalupe County.