Overview
- Gov. Greg Abbott ordered the halt on Monday to stop approvals for data centers seeking connections to the ERCOT grid until the Public Utility Commission of Texas and ERCOT complete a comprehensive audit.
- The audit will require each pending project to disclose tax incentives, projected annual and peak electricity use, plans for on‑site generation, projected water use and cooling technology, community protection measures, and ownership information.
- ERCOT has postponed its Batch Zero transmission planning study while it coordinates with the PUCT to implement the governor’s directive, and the agencies warned projects that fail to comply should be denied grid connection.
- The pause applies only to projects that seek ERCOT grid connections and does not affect data centers outside ERCOT or facilities that supply their own power.
- The move responds to public concerns about grid strain and water use and follows evidence that most firms ignored a prior PUCT survey; regulators face pressure to finish audits quickly or send lawmakers to craft permanent rules as more than 1,800 projects seeking about 474 gigawatts remain in the queue.