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Texas Pauses Data Center Grid Connections

Governor Greg Abbott ordered PUCT and ERCOT to audit projects for power, water, tax incentives, cooling, ownership so regulators can block noncompliant connections.

Overview

  • Governor Greg Abbott ordered the pause on Monday, Aug. 3, directing the Public Utility Commission of Texas and ERCOT to complete a comprehensive verification and to deny grid connections for projects that fail to provide required information.
  • The move targets projects seeking interconnection to the ERCOT grid and does not cover facilities outside ERCOT or sites that bring their own generation.
  • Regulators say more than 1,800 projects representing about 474 gigawatts are in the queue, roughly 90% from data centers, and agencies will require disclosures on projected power use, on‑site generation, water and cooling plans, tax breaks, ownership and community mitigation.
  • ERCOT has postponed its Batch Zero transmission planning study while PUCT and ERCOT collect data, a delay that developers warn could slow investments and that critics say is only a partial fix without new law.
  • The pause could shift where data centers are built, pressure firms to finance private power or water systems, and prompt the legislature to consider binding reforms to protect ratepayers and local water supplies.