Texas halts new data centers as governor calls for audits
Texas Governor Greg Abbott has paused new data center development until an audit has been completed.
Texas has imposed a new requirement for all new data center projects to undergo audits by both the Public Utility Commission of Texas (PUCT) and the state's grid operator, the Electric Reliability Council of Texas (ERCOT). This move comes after the grid operator's interconnection queue has seen a dramatic growth, from 233 gigawatts in January to over 474 gigawatts today - with about 90% of these requests being for data centers.
The audited projects could potentially overwhelm the grid, as it currently represents more than five times ERCOT's peak demand. While Texas has traditionally been a hub for data centers due to its lenient regulations and abundant power supply, Governor Greg Abbott has taken a more stringent approach to curb any potential grid overload.
The audits will cover various aspects like electricity and water demand, noise mitigation, light controls, use of tax incentives, and ownership details. Historically, Texas has been known for its business-friendly regulatory environment, but this new policy aims to head off the rising trend of electricity prices in the state. Despite this, some major tech companies like Google and Microsoft have been attracted to Texas because of its abundant natural gas reserves, wind and solar resources.
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