Governor Greg Abbott has put a stop to the approval process for new data centers looking to connect to the Texas electric grid. This directive was issued on August 3, instructing state regulators to conduct audits of the projects before any new connections can proceed.
The Electric Reliability Council of Texas (ERCOT) is currently monitoring over 1,800 projects in its interconnection queue, which together represent more than 474 gigawatts of requested capacity. This amount exceeds five times the grid's highest recorded demand.
Abbott noted that approximately 90 percent of these requests are from data centers, and the queue has expanded rapidly from 233 gigawatts in January, effectively doubling in less than six months.
This decision particularly impacts the Dallas-Fort Worth area, recognized as the second-largest data center market in the U.S. Analysts predict Texas may surpass Northern Virginia to become the largest market globally by 2030. North Texas alone has 26 large data center campuses tracked across various locations, making the pause significant for the region.
The audits will gather data on electricity needs, water usage, generation plans, and other factors that could affect local communities. Abbott's office had previously requested some of this information voluntarily, but most operators did not respond, leading to the current mandatory audits. No timeline for the completion of these audits has been provided.
Denison is about 69 miles north of Dallas.
