Overview
- Gov. Greg Abbott on Monday directed the Public Utility Commission of Texas and ERCOT to verify and audit every data center seeking interconnection and to deny grid access for projects that fail to meet agency rules or state law.
- ERCOT is reviewing about 1,800 interconnection projects that together request roughly 474 gigawatts of capacity, with roughly 90% of those requests coming from data centers, a level that regulators say could strain grid reliability.
- The audit will force developers to disclose tax incentives, projected annual and peak electricity demand, on‑site generation plans, projected water use and cooling technology, community mitigation measures, and ownership details.
- ERCOT has postponed its Batch Zero transmission planning study while it works with the PUCT to implement the directive, and the pause applies only to projects needing ERCOT interconnection not to facilities outside ERCOT or projects that self‑generate power.
- Reactions are mixed with industry groups urging a quick, targeted review to separate speculative from committed projects while advocacy groups and some officials call for stronger, binding legislation and warn local communities about continuing water and noise impacts; lawmakers will likely face pressure to act in the 2027 session.