Overview
- Governor Greg Abbott directed PUCT and ERCOT to conduct a comprehensive verification and audit of data centers seeking interconnection, effectively halting new grid approvals until projects meet the state’s disclosure requirements.
- The audit requires developers to disclose projected peak and annual electricity and water use, cooling plans, any tax incentives received, on-site generation plans, and full ownership information for review.
- ERCOT has stopped its planned 'batch zero' transmission study while the audit proceeds and regulators can deny grid connection to projects that fail to satisfy the verification.
- Projects that supply power entirely on-site and do not interconnect to ERCOT, often called behind‑the‑meter arrangements, appear likely to avoid the pause and may therefore proceed with less delay.
- The move has prompted political pushback from President Trump and industry uncertainty for lenders and investors, and it raises questions about who pays for grid upgrades, local water impacts, and possible changes to refund and interconnection rules.