Texas' Greg Abbott paused 1,800 data center projects after grid requests hit 5 times the state's all-time peak

“Our top priority is to protect Texans’ safety and quality of life,” he explained. “That includes providing affordable energy, maintaining a reliable electric grid, preserving water for our communities and championing Texas values. Those priorities can, and must, be achieved while also creating the jobs and providing the economic opportunity that comes with our national leadership in technological innovation and investment.”

What the audit entails

The directive brings 1,800 data center developments to a halt, as ERCOT and PUCT will now need to verify that each application to connect to Texas’ grid meets the Governor’s new criteria before moving forward. Notifications that were slated for August 7 under ERCOT’s previous review framework have now been delayed.

Abbott has laid out a list of additional information that data center applicants will need to provide, including project financials (who the controlling interests are and whether they are “paying their own way or depending on the state”); proposed power and water usage (whether centers will provide their own power/water or rely on public systems, and also how much electricity/water they intend to use); and plans to reduce the noise, light, traffic and other pollution these megastructures are known to emit.

These points reflect specific concerns raised by community members, and also the fact that, as Abbott states in his letter, the majority of existing data centers in the state — a whopping 83% of 341 of them — have failed to disclose their utilities use to the relevant authorities despite being legally required to do so.