Overview
- Governor Greg Abbott directed a comprehensive verification and audit of data centers seeking ERCOT interconnection, effectively pausing new grid approvals while regulators complete the review.
- ERCOT has halted its planned 'batch zero' transmission planning study, stopping the first phase of the large‑load interconnection process until the audit is finished.
- The audit requires granular disclosures from developers about financial assistance and tax breaks, projected peak and annual power and water use, cooling technology, planned on‑site generation, community mitigation plans, and ownership documentation.
- The directive likely excludes purely behind‑the‑meter projects that do not connect to ERCOT and facilities outside the ERCOT footprint, a distinction that is already pushing some developers toward on‑site generation and private power deals and raising lender and investor timing risk.
- The move follows concern over an unusually large interconnection queue—data centers account for roughly 90% of about 474 gigawatts of requests—and has provoked political and industry pushback over proposed PUC rules on withdrawal refunds and who should pay for new grid upgrades.