Texas data center approvals paused until audits completed: Gov. Abbott

EL PASO, Texas (KVIA) -- Monday, Texas Governor Greg Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive verification and audit of all data centers advancing through ERCOT’s interconnection process.

Gov. Abbott said PUCT and ERCOT have to complete the audit before any data center project moves forward.

Data centers who don't comply with the agencies' requirements won't be allowed to use the Texas grid, according to the governor's news release.

"Our top priority is to protect Texans’ safety and quality of life," said Governor Abbott. "Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first."

Gov. Abbott said ERCOT is considering more than 474 gigawatts of requests to connect to the Teas grid, which is more than five times the state's record peak electricity demand for the agency.

Additionally, 90% of the new power requests came from data centers, the governor said. He warned the growth could endanger the reliability and stability of the grid.

The governor built off his June 10 directive for data centers planned for the state. He directed the PUCT and ERCOT to collect the following information:

• Information about data centers paying their own way or depending on Texas for financial assistance.
• How data centers will provide their own power or depending on the ERCOT grid. They should include projected annual and peak electricity consumption.
• How data centers are bringing and reusing their own water instead of using local community water.
• How data centers plan to reduce impacts on nearby property owners and communities.
• Who owns and controls interests in the projects.

PUCT and ERCOT said in late July they're taking action to protect ratepayers from data center costs.

Gov. Abbott said he will work with the legislature to codify the protections.