Texas has halted the approval of new data center connections to the state power grid as regulators conduct an audit to evaluate the potential impacts of these projects, including their water consumption. This decision affects areas like Anna, located about 21 miles northeast of Frisco, since the electricity supply is shared across the grid.
Governor Greg Abbott issued the directive on August 3, addressing the Public Utility Commission of Texas and the Electric Reliability Council of Texas. Currently, ERCOT is monitoring over 1,800 projects waiting to connect, which collectively represent more than 474 gigawatts of demand, significantly exceeding the highest demand the Texas grid has ever experienced.
Approximately 90 percent of these requests originate from data centers. The queue has doubled in size since January, when it stood at 233 gigawatts. However, not all projects in the queue will be constructed, as developers often submit multiple requests across different locations.
The audit aims to collect information on various factors, including energy demand, water usage, noise levels, lighting, tax incentives, and project ownership. While the pause affects grid interconnections, projects that are developing their own power generation can continue without interruption. No specific timeline has been established for the completion of the audits.
