Texas halts new data‑center connections

Gov. Greg Abbott on August 3 directed Texas regulators to stop new data centers from joining the state power grid until a state audit of their power and water use is finished. The order told the Public Utility Commission of Texas and the Electric Reliability Council of Texas, or ERCOT, to review projects in the interconnection queue and gather information on electricity demand, cooling systems, water use and public incentives. Abbott said in his letter that the state’s “top priority is to protect Texans’ safety and quality of life.” ### What exactly did Abbott order regulators to do? Abbott’s August 3 letter told PUCT and ERCOT to pause new data centers’ ability to connect to the grid until regulators complete what Texas Public Radio described as a comprehensive audit. The directive applies to additional facilities seeking interconnection and requires regulators to collect project-level information before allowing them to move forward. (tpr.org) The governor’s office said the review will cover water and energy usage, financing, tax incentives and effects on nearby communities. Abbott also said projects that do not comply with state requirements should be denied a grid connection. ### Why are Texas officials focused on data centers now? ERCOT is tracking about 474 gigawatts of requested power from large energy users, according to Abbott’s office and Texas Public Radio. (tpr.org) About 90% of those new power requests are from data centers, a figure state officials have used to argue that the scale of proposed development could strain planning for grid capacity and transmission. Abbott had already moved in June to push regulators to make data centers pay for the electric infrastructure they need and to keep those costs from being shifted to households. In that earlier directive, he also asked PUCT and ERCOT to identify what authority they already had and what laws lawmakers would need to change. ### Is this a full moratorium on construction? (tpr.org) Texas Agriculture Commissioner Sid Miller said it is not. In comments reported by KSAT, Miller said Abbott’s declaration “doesn’t put the brakes on anything” and called it “political speak,” arguing that the audit requirements are broad enough that developers could satisfy them quickly with paperwork. (tpr.org) Texas Public Radio reported that critics were not objecting to the idea of tighter oversight itself, but saying the governor’s move did not go far enough. Gina Hinojosa, the Democratic nominee for governor, said Abbott could impose a moratorium until lawmakers put “real protections” in place. ### Why are people calling for a special legislative session? (ksat.com) Sid Miller, a Republican who has clashed politically with Abbott this year, said lawmakers should be brought back to Austin to pass binding rules instead of relying on executive directives. Miller said a special session could produce “laws with teeth,” while Public Citizen also said the governor’s powers are limited without legislation. (tpr.org) Texas Public Radio reported that Abbott’s office did not immediately say whether he intended to call a special session. The next regular legislative session is in 2027, and Public Citizen said that timeline could delay any statutory changes for months. ### What had regulators already been doing before this order? PUCT Chairman Thomas Gleeson told Abbott in July that the commission and ERCOT had already adopted new requirements for data centers seeking to join the grid. (tpr.org) Gleeson said many of those steps began under a 2025 state law and included changes to forecasting, transmission-cost allocation and planning for emergency load reductions. ERCOT and PUCT are also developing a program intended to get data centers to cut electricity use ahead of an anticipated grid emergency, according to Gleeson’s letter. He also asked lawmakers for broader authority, including the ability for regulators to communicate directly with data centers to reduce demand in an emergency. (tpr.org) ### What happens next for projects in the queue? The Public Utility Commission of Texas and ERCOT are now gathering the information Abbott requested from new data-center projects before any additional facilities can connect to the grid. Abbott said in June that he also wants legislation in the next regular session to codify cost-shifting rules, require water-efficient technologies and usage reporting, and repeal certain incentives and tax exemptions. (tpr.org 1) (tpr.org 2)