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Gov. Greg Abbott halts all knowledge middle approvals till state audit

August 4, 2026
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Amid rising public backlash to the fast buildout of information facilities throughout Texas, Gov. Greg Abbott on Monday introduced a moratorium on the approval of information facilities till regulatory businesses can audit proposed knowledge facilities in search of connection to the state’s electrical grid. 

It’s unclear how lengthy the audit will take, however Abbott is asking the Public Utility Fee of Texas and the Electrical Reliability Council of Texas to make sure knowledge middle builders present info on tax breaks they are going to obtain; energy use and technology; water use and cooling operations; efforts to scale back impacts on native communities; and possession of the power. Any initiatives that fail Abbott’s ordered “complete verification and audit” needs to be denied connection to the grid, the governor stated.

Abbott’s letter to the PUCT and ERCOT directs them to conduct the audit on all knowledge facilities advancing by way of ERCOT’s interconnection queue, or the road for vitality intensive initiatives in search of connection to the electrical grid. ERCOT is at the moment monitoring greater than 1,800 initiatives within the queue, representing over 474 gigawatts of electrical energy, or greater than 5 instances the grid’s file for peak demand, in response to ERCOT. Roughly 90% of the brand new energy requests are knowledge facilities, Abbott stated. 

ERCOT and the PUCT are already conducting a evaluation of among the initiatives within the queue by way of a course of referred to as “batch zero.” It’s unclear if Abbott needs businesses to audit these initiatives or all these at the moment within the queue.

“Our prime precedence is to guard Texans’ security and high quality of life,” Abbott wrote in a press release. “Any mission that fails to adjust to the necessities set forth by the PUCT and ERCOT, and by state regulation, have to be denied connection to the Texas grid. Merely put, Texans should come first.”

The Texas Tribune has recognized 335 knowledge facilities working in Texas. The state is at the moment the second largest marketplace for the amenities within the nation, behind Virginia, and is poised to take the highest spot. The Tribune has recognized a minimum of 248 deliberate knowledge facilities coming to the state, though tons of extra in lesser improvement phases have lined up within the energy queue.

Lawmakers have spent a lot of this 12 months in search of readability concerning the amenities’ electrical energy use, water use and entry to tax incentives because the Legislature considers tighter regulation of the business. 

Abbott cited the failure of some knowledge facilities to adjust to a latest PUCT’s survey measuring water and energy utilization as the explanation the audit was wanted as a result of it hinders the businesses’ capacity to make knowledgeable selections.

Developed by the PUCT in collaboration with the Texas Water Growth Board, the survey collects details about a knowledge middle’s water consumption, cooling methods, water sources, electrical energy demand and whether or not amenities are related to the state’s electrical grid or have their very own on-site energy supply reminiscent of a gas-fired energy plant. The responses are supposed to inform long-term state water planning.

State regulation requires the PUCT to share the information with the water improvement board and state environmental regulators and to submit a report back to the governor and the Legislative Finances Board by the tip of the 12 months.

Rep. Brad Buckley, R-Salado, a member of the Home Pure Sources Committee referred to as survey participation “fairly pathetic” throughout a June listening to. Of the 377 corporations PUCT employees stated it notified when the survey was launched, 28 submitted responses.

Additionally in June, Abbott directed the PUCT and ERCOT to require knowledge facilities totally fund the prices of electrical infrastructure wanted to serve them and take different measures to scale back electrical energy prices to residents. 

On July 17, PUCT Chair Thomas Gleeson responded to Abbott together with his personal letter outlining efforts the businesses have already taken and calling on the Legislature to grant them extra authority to control the business.

The PUCT didn’t reply to questions concerning the scope of the audit, saying the company would work with ERCOT to make sure Abbott’s new directives are carried out.

Abbott’s proposal could disrupt ERCOT’s ongoing rework of its approval course of for initiatives within the interconnection queue, requiring large-load initiatives to supply extra detailed info earlier than they will advance. The brand new guidelines for the primary set of initiatives into account, referred to as “batch zero,” have been accepted by the PUCT in June. The businesses are at the moment working to develop a extra everlasting algorithm for initiatives nonetheless within the queue. 

An ERCOT spokesperson stated the grid supervisor is reviewing Abbott’s order and can postpone the batch zero transmission planning research that’s at the moment underway. 

Surroundings Texas, an advocacy group that has referred to as for tighter regulation of the business, stated Abbott’s order is asking the correct questions however referred to as on him to order a particular session so the Legislature can start passing new legal guidelines. 

“AI has actual promise, however it shouldn’t come at the price of our water, our air, and our neighborhoods,” the group’s govt director Luke Metzger wrote in a press release. “Now that the state is asking the correct questions, it wants to make use of the solutions to develop safeguards that defend Texans.”

It is a creating story. Examine again for updates. 

This text first appeared on The Texas Tribune.



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Tags: AbbottapprovalsauditCenterdataGovGreghaltsstate
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