Gov. Greg Abbott ordered a temporary pause on new data center connections to the Texas grid while the PUCT and ERCOT audit pending projects to protect grid reliability. ERCOT is reviewing roughly 474 GW of connection requests — about 90% from data centers — raising concerns about strain on power and water resources. Local moratoria, rising public opposition, and calls for a special legislative session add pressure for tighter rules. Meanwhile, Abbott directed regulators to require data centers to fund the electric infrastructure needed to serve them as lawmakers plan longer-term action.
Texas Pauses New Data Center Grid Connections as Regulators Audit Projects to Protect Reliability
AUSTIN, TEXAS - JULY 28: In an aerial view, the Decker Creek Power Station is seen on July 28, 2026 in Austin, Texas. Surging electricity demand from artificial-intelligence data centers, coupled with equipment backlogs, has driven U.S. power-plant construction costs up more than 10% over the past year. Permitting delays and tariffs are also contributing to rising costs nationwide across all types of power generation, including large-scale solar and wind projects.
Texas Gov. Greg Abbott on Monday, Aug. 3, ordered a temporary halt to new data center connections to the state's electric grid while regulators complete audits of pending projects.
What Abbott Ordered
Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to carry out a comprehensive verification and audit of all data centers currently progressing through ERCOT's interconnection process. The governor said any project that does not meet requirements set by the agencies or state law should be denied connection.
"Our top priority is to protect Texans' safety and quality of life," Abbott said. "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."
Scale Of The Issue
ERCOT is reviewing roughly 474 gigawatts of proposed new connections — more than five times the system's record peak demand — and data centers account for about 90% of those requests. Abbott's office warned that such unprecedented growth in load could threaten the reliability and stability of the Texas electric grid.
Regulatory And Local Responses
The move follows a June 10 letter from Abbott asking regulators to collect water and power usage information from data center projects and to take steps to protect residential ratepayers from the costs of expansion. Abbott also directed regulators to require data centers to fully fund the electric infrastructure needed to serve their operations while longer-term rules are developed.
Construction continues on the Meta Platforms data center complex on a 1,000-acre site in far Northeast El Paso, near the Texas-New Mexico state line on March 12, 2026. The company is investing billions of dollars on the project to meet artificial intelligence growth.
Local governments have taken action in several communities. On June 16, the San Marcos City Council amended zoning rules to effectively bar new data center development, citing concerns about strains on local water and energy resources. Hill County briefly adopted a moratorium that was rescinded after a developer sued for $100 million. Hood County also pulled a moratorium after a state senator requested an attorney general's opinion on counties' authority to restrict such projects.
Public Reaction And Political Pressure
A University of Texas/Texas Politics Project poll released June 24 found 56% of registered Texas voters oppose building data centers in their communities, with 42% strongly opposed. Texas Agriculture Commissioner Sid Miller has urged Abbott to call a special legislative session to address data center impacts on agriculture, rural communities and water supplies, arguing those concerns are urgent.
Current Footprint
As of June 26, Texas had about 335 existing data centers and at least 248 additional projects in development, according to reporting from Texas outlets. Abbott said he plans to work with the 90th Texas Legislature, which convenes in January 2027, on longer-term regulation of the industry.
Key takeaway: The temporary pause is intended to ensure projects do not compromise grid reliability or impose costs on residents, while regulators assess water and power impacts and require developers to fund necessary infrastructure.
Reporting by Mateo Rosiles for USA TODAY.
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