Greg Abbott orders comprehensive audit of Texas data centers to protect state power grid and resources
Governor Greg Abbott issued a directive on Monday requiring all new data center projects seeking to connect to the Texas power grid to undergo a comprehensive audit by the Public Utility Commission of Texas and the Electric Reliability Council of Texas. The audit will evaluate projects based on their electricity and water demand, noise mitigation, and use of tax incentives. This move follows a period of rapid growth in the data center market, with ERCOT currently tracking 474 gigawatts of new connection requests, approximately 90% of which are from data centers. While the administration's goal is to ensure that data centers pay their own way and protect the quality of life for Texans, the directive has drawn mixed reactions. Texas Agriculture Commissioner Sid Miller criticized the move as political, arguing that the requirements are too vague to provide meaningful restrictions without a moratorium or a special legislative session. Meanwhile, residents in Guadalupe County are already facing local impacts, with property owners filing a suit to block two proposed developments due to concerns over water usage and public notice.