Texas has paused the approval of new data center connections to the state grid until an audit is completed. This audit will not only focus on electricity usage but will also examine tax incentives and ownership structures of the projects. Governor Greg Abbott issued this directive in a letter to the Public Utility Commission of Texas and the Electric Reliability Council of Texas.
The audit will require operators to disclose a range of information, including electricity demand, water usage, noise mitigation, and light controls. Notably, it will also investigate tax incentives claimed by data centers and their ownership structures, which can complicate transparency for local governments. Abbott's office previously sought some of this information voluntarily, but many operators did not respond.
Currently, ERCOT has over 1,800 projects in its interconnection queue, amounting to more than 474 gigawatts of combined demand, which is significantly higher than the grid's peak demand. Data centers account for about 90 percent of new requests. This growth has positioned Texas as a leading data center market, with projections suggesting it could become the largest in the world by 2030.
While the audit affects grid interconnections, projects that generate their own power can continue without interruption. No timeline has been provided for the audit's completion.
Princeton is about 16 miles northeast of Plano.
