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Governor Greg Abbott Orders Comprehensive Audit of Texas Data Centers to Manage Rapid Growth

The administration announced a comprehensive audit of all data centers seeking to connect to the Texas power grid, halting new project approvals until the evaluation is complete. Governor Greg Abbott issued the directive to address the explosive growth of the industry, which has surged following the rise of artificial intelligence. Under the new mandate, proposed data centers must report their electricity and water usage, tax incentives, and plans to mitigate community impacts. The Electric Reliability Council of Texas (ERCOT) will audit approximately 200 to 300 projects, representing roughly 200 gigawatts of potential demand. This audit is expected to take several months to complete, with results projected for late November or early December. While the administration announced the audit to provide clarity, some critics argue the directives are merely suggestions without legal consequences. However, the audit aims to provide state officials with a market-wide perspective on how these facilities will handle water technology and power deliverability over the next several years.

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