Texas says data centers must pass an audit before connecting to the grid

Texas Governor Greg Abbott has issued an order to audit new data centers following the revelation that the state houses over 400 gigawatts of power, a significant figure. In response, the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) must carry out a review of any proposed data centers in the state.

This mandate includes gathering details about the ownership, finances, power requirements, water consumption, and the measures these centers plan to take to mitigate any adverse effects on residents.

According to third-party data, Texas is currently home to 521 data centers, making it the second-largest state in the US for data centers, trailing only Virginia. In addition to the power demands of these existing centers, ERCOT is currently assessing more than 474 gigawatts in requests to connect to the state's electric grids. The administration has noted that over 90% of these requests are linked to data centers.

This massive influx of power could potentially jeopardize the reliability and stability of the Texas electric grid, a situation that has become unprecedented.

The governor's office has also highlighted that numerous restrictions or prohibitions on data center construction have been proposed at federal, state, and city levels. Given these concerns about resource utilization and the strain on existing infrastructure, data centers have become increasingly unpopular among many US citizens.