Texas Governor Greg Abbott has announced a temporary moratorium on the approval of new data centers seeking connection to the state’s electric grid, pending a comprehensive audit by state regulatory agencies. According to NBC 5, the directive targets facilities advancing through the Electric Reliability Council of Texas interconnection queue as public backlash grows over the rapid buildout of energy-intensive technology infrastructure.
Audit Requirements for Texas Grid Connection
Governor Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to verify and audit all proposed data centers before allowing them to connect to the power grid, as reported by USA Today. According to NBC 5, developers must provide detailed information regarding tax breaks, power use and generation, water use and cooling operations, community impact mitigation efforts, and facility ownership. Governor Abbott stated that any project failing to comply with state law and regulatory requirements must be denied a grid connection.
Strain on the Electric Grid and Water Resources
The Electric Reliability Council of Texas is currently tracking more than 1,800 projects in its interconnection queue, representing over 474 gigawatts of electricity—more than five times the state’s record for peak demand, according to NBC 5. Data centers account for approximately 90% of these new power requests. USA Today noted that a University of Texas and Texas Politics Project poll released on June 24 found 56% of registered voters oppose data center construction in their communities. Additionally, Texas Agriculture Commissioner Sid Miller warned that data center expansions threaten rural communities and water supplies, urging state officials to prioritize agricultural needs.
Industry Response and Local Ordinances
The Data Center Coalition, a trade group representing major tech companies, expressed support for the review. According to NBC 5, spokesperson Dan Diorio stated that the audit could help separate responsible developers from irresponsible ones. Meanwhile, local municipalities have taken independent action. USA Today reported that the San Marcos City Council adopted an ordinance on June 16 amending zoning rules to effectively ban new data center developments over resource strain concerns, while counties such as Hill and Hood previously pursued short-lived moratoriums amid legal challenges.
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