Houston, TX, August 4, 2026 —

Texas Governor Greg Abbott has issued an order to cease the approval of new data centers aiming to connect to the state’s electrical grid. This moratorium is set to remain in place until state regulatory bodies conduct thorough audits of the proposed facilities.

The directive impacts the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT), both of which are tasked with overseeing the state’s power infrastructure. The comprehensive audits will scrutinize various aspects of the data center proposals, including details on tax incentives, projected power and water consumption, plans for mitigating community impact, and information regarding ownership structures.

This decision arises from growing public apprehension regarding the swift proliferation of data centers across Texas. Concerns have been voiced about the transparency surrounding their operational practices and their substantial consumption of resources, particularly electricity and water. The governor’s order aims to address these issues by ensuring a more rigorous review process.

The halt in approvals also affects ERCOT’s current evaluation of a significant number of projects that are pending in its interconnection queue. This queue represents facilities that have applied to connect to the grid but have not yet received final approval. The timeline for the completion of the audits and the subsequent lifting of the moratorium has not been specified.



Story summarized from the original created by AP on apnews.com, see more information here.

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