Texas has halted new data center connections to the state grid pending an audit that will assess not only electricity needs but also tax incentives and ownership structures. Governor Greg Abbott issued this directive on August 3 to the Public Utility Commission of Texas and the Electric Reliability Council of Texas.
The audit will require operators to disclose a range of information, including on-site and off-site electricity demand, water usage, generation plans, noise mitigation, light controls, and ownership details. Notably, tax incentives and ownership structures are now part of the evaluation, as data centers often qualify for various state and local abatements, complicating transparency for local governments.
Currently, ERCOT reports over 1,800 projects in its interconnection queue, totaling more than 474 gigawatts, which is significantly higher than the grid's peak demand. Abbott indicated that data centers represent about 90 percent of new requests, a figure that has increased from 233 gigawatts in January.
While the audit affects grid interconnections, projects that can generate their own power on-site are exempt from this pause. No timeline for the completion of the audits has been provided. Celina, located about 22 miles north of Plano, is part of a region projected to become a major hub for data centers, with Texas potentially becoming the world's largest market by 2030.