Governor Greg Abbott has halted the process for new data centers looking to connect to the state's electric grid, directing state regulators to conduct audits of these projects first. This decision was communicated in a letter sent on August 3 to the Electric Reliability Council of Texas and the Public Utility Commission of Texas.
Currently, ERCOT is monitoring over 1,800 projects in its interconnection queue, which collectively request more than 474 gigawatts of capacity. This figure exceeds five times the grid's highest recorded demand. Abbott noted that approximately 90 percent of these connection requests are from data centers, and the queue has surged from 233 gigawatts in January, effectively doubling in less than six months.
This pause significantly impacts the Dallas-Fort Worth area, the second-largest data center market in the U.S. Analysts predict that Texas could surpass Northern Virginia to become the largest market globally by 2030. North Texas alone has 26 large data center campuses planned, spanning from Sherman to Waco and Weatherford to Terrell.
The required audits will gather data on electricity demand, water consumption, on-site generation plans, and other factors affecting nearby communities. Abbott's office had previously sought this information voluntarily, but a lack of responses led to the current mandatory audits. No timeline has been established for the completion of these audits.
Allen is about 24 miles north of Dallas.
