Texas is putting a halt to data center projects that try to tap into public utilities under new regulations issued by Governor Greg Abbott. The new order mandates the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) complete extensive audits of data center developers before they can connect to the state's utility grid. Notably, developers must provide information on "state and local tax incentives, grants, abatements, or other public financial assistance," prospective water and electricity use, and controlling interests in their projects.
There are currently 1,800 projects awaiting ERCOT approval to join the state grid. Around 90 percent of them are for data centers, and the projects would cumulatively demand 474 gigawatts of electricity, according to the governor's office. The projected demand is more than five times the grid’s peak record, reported the Texas Tribune.
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"Our top priority is to protect Texans’ safety and quality of life. Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first," Abbott wrote in a press release issued Aug. 3.
