Abbott Orders Audit of Texas Data Centers, Pausing Future Grid Connections

Earlier this week, Gov. Greg Abbott ordered state regulators to conduct a comprehensive audit of data centers seeking to connect to the Texas grid, effectively pausing future data center projects until the review is complete.

Abbott’s order directs the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a “comprehensive verification and audit of all data centers advancing through ERCOT’s interconnection process.”

The order pauses all future data center projects from continuing until the audit is complete. Abbott said any project that fails to meet state requirements will be denied connection to the state’s grid.

“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.”

Abbott’s order builds on to his June 10 directive instructing PUCT and ERCOT to take immediate steps to protect residential ratepayers from potential costs associated with data centers.

Under the order, ERCOT and PUCT will collect information from each data center project, including whether facilities are paying their own costs, how they plan to supply power, whether they rely on ERCOT for electricity, whether they provide and reuse their own water, and what measures they will take to reduce impacts on neighboring property owners and communities.

Last month, Abbott also called for a ban on AI data centers in rural neighborhoods across Texas after residents raised concerns about the projects’ effects on residential communities and water supplies.

Following Abbott’s demand, a proposed Henderson County data center withdrew its plans to acquire land for development, prompting celebrations from a Henderson County commissioner and Abbott.

PUCT Chairman Thomas Gleeson said in a statement that the commission will work with ERCOT to implement Abbott’s directive.

“We appreciate Gov. Abbott’s directive and will continue to work closely with ERCOT to ensure these requirements, along with those laid out in our July 17, 2026 letter to Gov. Abbott, are fully carried out on behalf of the people of Texas,” Gleeson said.