Amid growing public backlash to the rapid buildout of data centers across Texas, Gov. Greg Abbott on Monday announced a moratorium on the approval of data centers until regulatory agencies can audit proposed data centers seeking connection to the state’s electric grid.
Abbott is asking the Public Utility Commission of Texas and the Electric Reliability Council of Texas to ensure data center developers provide information on tax breaks they will receive; power use and generation; water use and cooling operations; efforts to reduce impacts on local communities; and ownership of the facility. Any projects that fail Abbott’s ordered “comprehensive verification and audit” should be denied connection to the grid, the governor said.
ERCOT is currently tracking more than 1,800 projects in the queue, representing over 474 gigawatts of electricity,
or more than five times the grid’s record for peak demand, according to ERCOT. Approximately 90% of the new power requests are data centers, Abbott said.
There is no state or federal government database of the facilities, but the Texas Tribune has identified at least 335 data centers operating in Texas. The state is currently the second largest market for the facilities in the country, behind Virginia, and is poised to take the top spot. The Tribune has identified at least 248 planned data centers coming to the state, although hundreds more in lesser development phases have lined up in the power queue.
Texas Department of Agriculture Commissioner Sid Miller called Abbott’s directive vague and said it was not a substitute for legislative action, although he applauded the additional scrutiny.
“Without legislative action, this directive is all hat and no cattle — empty political rhetoric wrapped in meaningless fluff,” Miller wrote. “Texans need laws with teeth, not another press release designed to make it look like something is being done while hyperscale projects continue moving forward.”
State Rep. Gina Hinojosa, an Austin Democrat running against Abbott, said his directives do not go far enough.
“So nice to see another strongly worded letter from Abbott after he proudly made Texas the wild west of data centers,” Hinojosa wrote in a statement.