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Gov. Abbott Orders Audit of Texas Data Center Projects Amid Growing Backlash

  • On Monday, Governor Greg Abbott ordered a moratorium on new data center grid connections, mandating the Public Utility Commission of Texas and Electric Reliability Council of Texas complete a comprehensive audit before approving additional projects.
  • Massive power demand from data centers threatens grid stability; ERCOT is evaluating connection requests for over 474 gigawatts, more than five times the state's current record peak electricity demand.
  • Under the directive, the Public Utility Commission of Texas must collect detailed disclosures including tax incentives, water usage, power generation plans, ownership transparency, and community protection measures such as "noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination, and other community protection measures."
  • Following the directive, ERCOT postponed the "Batch Zero" transmission planning study, while Data Center Coalition Executive Vice President Dan Diorio urged regulators to distinguish between speculative projects and serious, committed investors.
  • Critics like Democratic gubernatorial candidate Gina Hinojosa argue the governor is deflecting responsibility, as lawmakers continue scrutinizing tax incentives and water use amid growing bipartisan concern over data center impacts.
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KXXV broke the news on Monday, August 3, 2026.
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