Texas Halts Data Center Grid Approvals Pending Statewide Audit

Texas Governor Greg Abbott has directed state energy regulators to suspend approvals for data centers seeking to connect to the state's electric grid until a review of pending applications is complete. The pause applies to applications handled by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT).

According to The Texas Tribune, as cited by Tom's Hardware, applicants will be required to disclose tax break arrangements, power use and generation, water use and cooling operations, measures to reduce community impact, and facility ownership. Developers that do not provide these details will not be permitted to connect to the grid.

In a statement, Abbott said the state's top priority is to protect the safety and quality of life of Texans, adding that any project failing to meet the requirements set by PUCT, ERCOT and state law must be denied a grid connection.