Texas governor pauses new data center approvals pending power grid audit

Greg Abbott issued a temporary ban on new data-center developments, requiring the Public Utility Commission and the Electric Reliability Council of Texas to audit all pending grid-connection applications. ERCOT’s backlog includes about 474 gigawatts of requests, five times the state’s historic peak demand, with around 90% originating from data-center operators. The governor warned that unchecked load growth could jeopardize grid stability and said regulators will examine whether projects rely on their own power and water supplies or on state resources and incentives.

The Data Center Coalition, representing firms such as Microsoft and Google, expressed cautious optimism, urging a swift review to differentiate serious investors from speculative projects. In contrast, the Texas chapter of Public Citizen dismissed the order as a meaningless “faux pause,” noting many companies are already building private fossil-fuel power plants. State officials, including agriculture commissioner Sid Miller and Democratic agriculture-commissioner candidate Clayton Tucker, urged Abbott to turn the directive into legislation or call a special session.