Texas Governor Halts Data Center Approvals Over Grid Strain and Non-Compliance

Published Aug 4, 04:48 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 is completed. The move follows a PUCT survey of 377 data center operators on 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 Texas's current peak record. Abbott stated the pause is to protect Texans' safety and quality of life. 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. Projects outside ERCOT jurisdiction or with their own power are unaffected.