Overview
- On Monday, Aug. 3, 2026, Gov. Greg Abbott directed the Public Utility Commission of Texas and ERCOT to verify and audit every data‑center project in the grid interconnection queue before any new connections are approved.
- The order effectively pauses approvals while agencies collect expanded disclosures about state or local financial assistance, projected annual and peak electricity demand, on‑site generation plans, water use and cooling technology, community mitigation measures, and project ownership.
- Abbott cited ERCOT data showing roughly 474 gigawatts of connection requests—more than five times the grid’s record peak demand—with about 90% of new requests coming from data centers as a key reliability concern.
- ERCOT has postponed its Batch Zero transmission planning study while it reviews the governor’s directive with the PUCT, leaving the scope, timetable and specific audit criteria unspecified and creating uncertainty for developers and communities.
- The move reflects growing political pressure and could push the Legislature to change incentives, siting rules and cost‑allocation for transmission and generation while raising the risk of higher bills or local water stress if projects pivot to on‑site power or nonreusable water systems.