Texas Orders Audit of All Data Centers Seeking Texas Grid Connection

AUSTIN, TX - Governor Greg Abbott today 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. The PUCT and ERCOT must complete this audit before any data center project moves forward. Any project that fails to comply with the requirements set forth by the PUCT and ERCOT will be denied connection to the Texas grid.

“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.”

ERCOT is currently considering approximately over 474 gigawatts of requests to connect to the Texas grid, more than five times Texas’ record peak electricity demand for ERCOT. Approximately 90 percent of the new power requests are data centers. That unprecedented load growth could endanger the reliability and stability of the Texas electric grid.

Building on his June 10 directive, Governor Abbott also directed the PUCT and ERCOT to obtain the following information from each data center project:

• Information detailing the extent to which data centers are paying their own way or depending on the state for financial assistance. That would include all state and local tax incentives, grants, abatements, or other public financial assistance received or expected to be received.
• The extent to which data centers are providing their own power or depending on the ERCOT grid for that power. Details should include projected annual and peak electricity consumption; and any effort and progress to construct or procure on-site electric generation including generation type, or other measures to reduce demand on the ERCOT grid.
• The extent to which data centers are bringing their own water and reusing their own water as opposed to using water needed by local communities. The details should include projected annual and peak water consumption and anticipated sources of water supply. You must also obtain information about the cooling technology that will be utilized, including whether the facility will employ air-cooled, closed-loop, or another water-efficient cooling system.
• The extent to which data centers are using measures to reduce impacts on neighboring property owners and communities, including noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination, and other community protection measures, understanding that each community is unique.
• Information detailing the ownership and controlling interests in the project.