
Texas Governor Greg Abbott has paused approvals for new data centers seeking to connect to the state's electric grid, ordering regulators to conduct a comprehensive audit before any projects can move forward.…
Texas Governor Greg Abbott has paused approvals for new data centers seeking to connect to the state's electric grid, ordering regulators to conduct a comprehensive audit before any projects can move forward. Developers must now 'prove' their expected electricity and water use, tax incentives, cooling methods, and community impact before grid connection, according to The Texas Tribune. The move comes as the Electric Reliability Council of Texas (ERCOT) reports over 1,800 projects in its interconnection queue, representing 474 GW of demand, with data centers accounting for about 90% of new requests.

Abbott's directive follows low participation in a state survey on data center resource use: only 28 of 377 companies responded. The governor said projects failing the audit should be denied connection, stating 'Texans must come first.' The order may affect ongoing transmission planning studies and has drawn praise from environmental groups, who urge lasting legislative safeguards.
Texas is finally asking hard questions about data centres' hunger for power and water, but an audit alone won't fix the underlying tension between rapid AI expansion and grid reliability. The same pressures are building in India, where no comparable scrutiny exists. The real test is whether Abbott's order translates into binding legislation, or just delays the inevitable. Will other states follow, and how will developers respond when their shiny promises face a numbers check?
Source: timesofindia.indiatimes.com
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