Texas Halts New Data Centers, Mandates Audits

Texas Governor Greg Abbott announced that all new data center projects must undergo audits by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT). This decision comes as ERCOT's interconnection queue has grown dramatically, from 233 gigawatts in January to 474 gigawatts within six months, with about 90% of new connection requests attributed to data centers. The queue now represents more than five times ERCOT's total peak demand, raising concerns about grid overload. While Texas has attracted data center operators like Google and Microsoft due to its natural gas, wind, and solar resources, rising electricity prices have become a concern. Abbott had previously attempted a voluntary survey but most developers did not respond, prompting the mandatory audits. Audits will collect information on electricity and water demand, noise mitigation, light controls, tax incentives, and ownership details. The outcome could impact Texas's status as a data center mecca.