Texas Governor Halts Data Center Grid Approvals After Only 28 of 377 Operators Responded to Audit

Published Aug 4, 02:57 PM UTC

Texas Governor Greg Abbott has ordered a moratorium on data center approvals by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) until an audit of applicant information is completed. The move follows a PUCT survey of 377 data center operators for water and power usage, to which only 28 responded. Over 1,800 projects, 90% of which are data centers, are awaiting grid connection, with a combined demand of 474 gigawatts—five times ERCOT's current peak demand. The moratorium does not affect areas outside ERCOT jurisdiction, like El Paso, or projects that generate their own power. Critics, including Agriculture Commissioner Sid Miller and State Representative Gina Hinojosa, argue the directive lacks legislative teeth and is insufficient to regulate the booming industry, which is the second largest in the U.S. after Virginia.