Texas halts new data center grid connections, orders audit

Texas Governor Greg Abbott has ordered a halt to all new data center projects seeking to connect to the state's power grid, mandating a comprehensive state audit before any can proceed. The directive, issued on August 3, 2026, instructs the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to verify and audit every data center project currently in the interconnection queue.

The move is a response to an unprecedented surge in power demand that officials warn threatens grid reliability. ERCOT is currently evaluating approximately 474 gigawatts of connection requests, a figure that represents more than five times the state's record peak electricity demand. Roughly 90 percent of these new requests are from data center projects. Governor Abbott stated that protecting the safety and quality of life for Texans is the top priority, and any project failing to comply with regulatory requirements and state law will be denied a grid connection.

The audit will require data center developers to provide detailed information, including their projected electricity and water demand, noise mitigation plans, light controls, use of tax incentives, and...