Texas Halts Data Center Grid Connections for Statewide Audit
Texas Gov. Greg Abbott has ordered ERCOT and the state's PUC to suspend all new data center interconnections pending a comprehensive audit of their power, water, and community impacts.
Citing an overwhelming surge in demand, Texas Governor Greg Abbott on August 3, 2026, directed state energy regulators to halt all new data center connections to the electric grid. The order requires the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of every data center project in the interconnection queue before any can proceed. The directive follows reports that data centers account for roughly 90 percent of 474 gigawatts in new power requests—more than five times ERCOT’s record peak demand. The indefinite pause creates profound uncertainty for developers, investors, and technology companies with projects in Texas, a major hub for the industry. The audit’s scope is extensive, covering public financial support, water consumption, ownership structure, and community impact, signaling a new era of heightened scrutiny for large-load electricity consumers. Counsel for affected projects must now navigate an undefined review process, as the governor's letter set no deadline for completion and warned that non-compliance would result in denial of grid access.