Texas Governor Halts Data Center Grid Approvals Amid Power Demand Surge

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 of applicant information 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 combined demand estimated at 474 gigawatts—five times ERCOT's current peak demand. The moratorium does not affect projects outside ERCOT's jurisdiction, such as in El Paso, or those generating their own power. Critics, including Agriculture Commissioner Sid Miller and gubernatorial opponent Gina Hinojosa, argue the pause is insufficient and call for stronger legislative regulation of the booming data center industry, the second largest in the U.S. after Virginia.