POLICY: Texas orders audit of data center projects, prompting ERCOT to pause Batch Zero study

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Texas Gov. Greg Abbott directed state grid authorities to audit data center projects seeking connections to the ERCOT system, effectively pausing affected developments while regulators verify their power, water, financing and community impacts, according to a press release.

Abbott ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct a comprehensive review of data centers moving through the grid interconnection process. Projects that fail to comply with state law or PUCT and ERCOT requirements would be denied grid connections.

“Our top priority is to protect Texans’ safety and quality of life,” Abbott said. “Simply put, Texans must come first.”

The review will examine how much electricity each project expects to consume, its reliance on the ERCOT grid and any plans to build or procure onsite generation. Regulators were also instructed to collect information on water consumption, cooling technology, tax incentives, grants and abatements.

The audit will further assess ownership and controlling interests, along with proposed measures to address noise, lighting, traffic, setbacks and emergency-response coordination.

ERCOT told reporters that it is postponing its Batch Zero transmission planning study while it implements the governor’s directive. The study was intended to evaluate an initial group of large-load projects together and allocate available transmission capacity.

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