{"id":23023,"date":"2026-08-03T18:12:20","date_gmt":"2026-08-03T18:12:20","guid":{"rendered":"https:\/\/scannn.com\/new-texas-data-center-projects-frozen-until-state-audits-them\/"},"modified":"2026-08-03T18:12:20","modified_gmt":"2026-08-03T18:12:20","slug":"new-texas-data-center-projects-frozen-until-state-audits-them","status":"publish","type":"post","link":"https:\/\/scannn.com\/lv\/new-texas-data-center-projects-frozen-until-state-audits-them\/","title":{"rendered":"New Texas data center projects frozen until state audits them"},"content":{"rendered":"\r\n<div>\n\n\t\t\n\t\t<aside>\t\t\t\n\t\t<\/aside>\n<p><iframe title=\"Everlit Audio Player\" src=\"https:\/\/everlit.audio\/embeds\/artl_aN16tlELw7K?client=wp&amp;client_version=3.2.8&amp;ui_cover_art=false&amp;ui_title_intro=Listen+to+this+article&amp;ui_title_icon=headphones\" width=\"100%\" height=\"136px\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen=\"\"><\/iframe><\/p><div class=\"everlit-disclaimer\" style=\"margin: 0;\"><div style=\"font-size: 0.7rem;color: #4a4a4a;font-family: Open Sans, Helvetica Neue, Helvetica, Arial, sans-serif\">Audio recording is automated for accessibility. Humans wrote and edited the story. See our <a href=\"https:\/\/www.texastribune.org\/about\/ethics\/#ai-policy\">AI policy<\/a>, and give us <a href=\"https:\/\/airtable.com\/appFeleeKVUN0Iytx\/pagPG40gbkU0EfjIr\/form\">feedback<\/a>.<\/div><\/div>\n<p class=\"wp-block-paragraph\">Amid growing public backlash to the rapid buildout of data centers across Texas, Gov. Greg Abbott on <a href=\"https:\/\/gov.texas.gov\/news\/post\/governor-abbott-directs-comprehensive-data-center-audit\">Monday announced a moratorium<\/a> on the approval of data centers until regulatory agencies can audit proposed data centers seeking connection to the state\u2019s electric grid.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">It is unclear how long the audit will take, but the effort is Abbott\u2019s strongest effort yet to slow the development of these data centers statewide and underscores how little information members of the public, including state leaders, know about the facilities.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">Abbott is asking the Public Utility Commission of Texas and the Electric Reliability Council of Texas to ensure data center developers provide information on tax breaks they will receive; power use and generation; water use and cooling operations; efforts to reduce impacts on local communities; and ownership of the facility. Any projects that fail Abbott\u2019s ordered \u201ccomprehensive verification and audit\u201d should be denied connection to the grid, the governor said.<\/p>\n\n<p class=\"wp-block-paragraph\">\u201cOur top priority is to protect Texans\u2019 safety and quality of life,\u201d Abbott wrote in a statement. \u201cAny 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.\u201d<\/p>\n<aside class=\"scaip scaip-1    \">\t\t\n\t\t<\/aside>\n\n<p class=\"wp-block-paragraph\">Abbott\u2019s letter to the PUCT and ERCOT directs them to conduct the audit on all data centers advancing through ERCOT\u2019s interconnection queue, or the line for energy intensive projects seeking connection to the electric grid. ERCOT is currently tracking more than 1,800 projects in the queue, representing over 474 gigawatts of electricity, or more than five times the grid\u2019s record for peak demand, according to ERCOT. Approximately 90% of the new power requests are data centers, Abbott said.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">ERCOT and the PUCT are already conducting a review of some of the projects in the queue through a process known as \u201cbatch zero.\u201d It is unclear if Abbott wants agencies to audit those projects or all those currently in the queue. Following Abbott\u2019s directive, ERCOT said Monday they are putting the batch zero review on pause.<\/p>\n\n<p class=\"wp-block-paragraph\">There is no state or federal government database of the facilities, but <a href=\"https:\/\/www.texastribune.org\/2026\/06\/26\/texas-data-center-guide-what-you-need-to-know\/\">the Texas Tribune has identified<\/a> at least 335 data centers operating in Texas. The state is currently the second largest market for the facilities in the country, behind Virginia, and is poised to take the top spot. The Tribune has identified at least 248 planned data centers coming to the state, although hundreds more in lesser development phases have lined up in the power queue.<\/p>\n\n<p class=\"wp-block-paragraph\">While Abbott\u2019s directive pauses the approval of new data centers seeking connection to the ERCOT grid, some data centers are building on-site power generation that allows them to bypass traditional connection to the grid. The ERCOT region also does not include the entirety of the state, like El Paso, which has seen the development of several large data centers.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">The Data Center Coalition, a trade group that represents some of the nation\u2019s largest tech companies, said it was hopeful Abbott\u2019s directive could separate responsible developers from irresponsible ones and urged regulators to quickly conduct the audits.\u00a0<\/p>\n\n\n<p class=\"wp-block-paragraph\">\u201cDone correctly, this review can showcase the good actors in the data center industry rather than delaying them unnecessarily, ensuring Texas will continue to be the national leader in economic development,\u201d the organization\u2019s spokesman Dan Diorio wrote in a statement Monday.<\/p>\n<aside>\t\t\t\n\t\t<\/aside>\n\n<h2 class=\"wp-block-heading\">Lack of transparency<\/h2>\n\n<p class=\"wp-block-paragraph\">Lawmakers have spent much of this year seeking clarity about the facilities\u2019 electricity use, water use and access to tax incentives as the Legislature considers tighter regulation of the industry.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">Abbott cited the failure of some data centers to <a href=\"https:\/\/www.texastribune.org\/2026\/06\/23\/texas-data-centers-puc-water-survey\/\">comply with a recent PUCT\u2019s survey measuring water and power usage<\/a> as the reason the audit was needed because it hinders the agencies\u2019 ability to make informed decisions.<\/p>\n\n<p class=\"wp-block-paragraph\">Developed by the PUCT in collaboration with the Texas Water Development Board, the survey collects information about a data center\u2019s water consumption, cooling systems, water sources, electricity demand and whether facilities are connected to the state\u2019s electric grid or have their own on-site power source such as a gas-fired power plant. The responses are meant to inform long-term state water planning.<\/p>\n\n<p class=\"wp-block-paragraph\">State law requires the PUCT to share the data with the water development board and state environmental regulators and to submit a report to the governor and the Legislative Budget Board by the end of the year.<\/p>\n<aside class=\"scaip scaip-3    \">\t\t\n\t\t<\/aside>\n\n<p class=\"wp-block-paragraph\">Rep. Brad Buckley, R-Salado, a member of the House Natural Resources Committee called survey participation<a href=\"https:\/\/www.texastribune.org\/2026\/06\/23\/texas-data-centers-puc-water-survey\/\"> \u201cpretty pathetic\u201d during a June hearing.<\/a> Of the 377 companies PUCT staff said it notified when the survey was launched, 28 submitted responses.<\/p>\n\n<p class=\"wp-block-paragraph\">Also in June, <a href=\"https:\/\/gov.texas.gov\/uploads\/files\/press\/Thomas_Gleeson_Pablo_Vegas_Data_Centers_Directive_Letter_to_PUC_ERCOT_FINAL.pdf\">Abbott directed the PUCT and ERCOT<\/a> to require data centers fully fund the costs of electric infrastructure needed to serve them and take other measures to reduce electricity costs to residents.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">On July 17, <a href=\"https:\/\/interchange.puc.texas.gov\/Documents\/58317_18_1666954.PDF\">PUCT Chair Thomas Gleeson responded<\/a> to Abbott with his own letter outlining efforts the agencies have already taken and calling on the Legislature to grant them more authority to regulate the industry.<\/p>\n\n<p class=\"wp-block-paragraph\">The PUCT did not respond to questions about the scope of the audit, saying the agency would work with ERCOT to ensure Abbott\u2019s new directives are carried out.<\/p>\n\n<p class=\"wp-block-paragraph\">Abbott\u2019s proposal may disrupt ERCOT\u2019s ongoing <a href=\"https:\/\/www.texastribune.org\/2026\/06\/17\/texas-ercot-data-center-energy-grid\/\">rework of its approval process for projects <\/a>in the interconnection queue, requiring large-load projects to provide more detailed information before they can advance. The new rules for the first set of projects under consideration, known as \u201cbatch zero,\u201d were approved by the PUCT in June. The agencies are currently working to develop a more permanent set of rules for projects still in the queue.\u00a0<\/p>\n<aside class=\"scaip scaip-4    \">\t\t\n\t\t<\/aside>\n\n<p class=\"wp-block-paragraph\">An ERCOT spokesperson said the grid manager is reviewing Abbott\u2019s order and will postpone the batch zero transmission planning study that is currently underway.\u00a0<\/p>\n\n<h2 class=\"wp-block-heading\">Calls for a full moratorium\u00a0<\/h2>\n\n<p class=\"wp-block-paragraph\">City and county governments in the state have tried to slow data center development amid grassroots resistance to the facilities\u2019 construction. <a href=\"https:\/\/www.texastribune.org\/2026\/06\/02\/texas-data-centers-hood-county-local-control-rural-water-power\/\">Hood County rejected<\/a> two attempts to pass a countywide moratorium in February after state Sen. Paul Bettencourt, R-Houston, warned the commissioners court it lacked the legal authority to do so. In May, Hill County approved the state\u2019s first moratorium on the development of data centers but rescinded the measure a month later after <a href=\"https:\/\/www.texastribune.org\/2026\/06\/05\/texas-hill-county-moratorium-rescinded-data-centers\/\">a developer sued for $100 million in damages<\/a>. And in June, <a href=\"https:\/\/www.texastribune.org\/2026\/06\/30\/texas-san-marcos-data-center-ban-zoning-laws\/\">San Marcos became the first Texas city<\/a> to issue such a moratorium.<\/p>\n\n<p class=\"wp-block-paragraph\">Nationally, New York Gov. Kathy Hochul, a Democrat,<a href=\"https:\/\/www.politico.com\/news\/2026\/07\/15\/trump-knocks-hochuls-data-center-moratorium-00999538\"> faced criticism from President Donald Trump<\/a> after she last month issued a year-long pause on the construction of the largest data centers.\u00a0\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">Opponents of the data center industry say Abbott\u2019s Monday directive to regulators comes up short of a true moratorium.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">Texas Department of Agriculture Commissioner Sid Miller called Abbott\u2019s directive vague and said it was not a substitute for legislative action, although he applauded the additional scrutiny.\u00a0<\/p>\n<aside class=\"scaip scaip-5    \">\t\t\n\t\t<\/aside>\n\n<p class=\"wp-block-paragraph\">\u201cWithout legislative action, this directive is all hat and no cattle \u2014 empty political rhetoric wrapped in meaningless fluff,\u201d Miller wrote. \u201cTexans need laws with teeth, not another press release designed to make it look like something is being done while hyperscale projects continue moving forward.\u201d<\/p>\n\n<p class=\"wp-block-paragraph\">Miller, along with many other opponents of data center development, has been calling on Abbott to order a special session that would allow legislators to pass laws regulating the industry.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">\u201cAI has real promise, but it shouldn\u2019t come at the cost of our water, our air, and our neighborhoods,\u201d said Luke Metzger, executive director of Environment Texas, in a written statement about the need for a data center-focused special session. \u201cNow that the state is asking the right questions, it needs to use the answers to develop safeguards that protect Texans.\u201d<\/p>\n\n<p class=\"wp-block-paragraph\">State Rep. Gina Hinojosa, an Austin Democrat running against Abbott, said his directives do not go far enough.\u00a0<\/p>\n\n<p class=\"wp-block-paragraph\">\u201cSo nice to see another strongly worded letter from Abbott after he proudly made Texas the wild west of data centers,\u201d Hinojosa wrote in a statement. \u201cAbbott\u2019s call for a \u2018pause\u2019 could be for one day \u2013 and no one buys it. He\u2019s taken millions from data center CEOs while giving Texans lip service to non-existent restrictions.\u201d<\/p>\n<aside class=\"scaip scaip-6    \">\t\t\n\t\t<\/aside>\n\n<p class=\"wp-block-paragraph\"><em>Alejandra Martinez contributed to this report.<\/em><\/p>\n<aside class=\"scaip scaip-7    \">\t\t\n\t\t<\/aside>\n<!-- \/wp:post-content --><section id=\"block-44\" class=\"below-content widget widget_block\"><!-- wp:shortcode --><aside>\t\t\t\n\t\t<\/aside><!-- \/wp:shortcode --><\/section><section id=\"block-39\" class=\"below-content widget widget_block\">\n\n<\/section><section id=\"block-45\" class=\"below-content widget widget_block\"><!-- wp:shortcode --><aside>\t\t\t\n\t\t<\/aside><!-- \/wp:shortcode --><\/section>\t<\/div>\r\n<br><a href=\"https:\/\/www.texastribune.org\/2026\/08\/03\/texas-data-center-project-audit-greg-abbott\/?utm_source=tldrit\">Source link <\/a>\r\n","protected":false},"excerpt":{"rendered":"<p>Audio recording is automated for accessibility. Humans wrote and edited the story. See our AI policy, and give us feedback. Amid growing public backlash to the rapid buildout of data centers across Texas, Gov. Greg Abbott on Monday announced a moratorium on the approval of data centers until regulatory agencies can audit proposed data centers [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":23024,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[143],"tags":[],"class_list":["post-23023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai"],"_links":{"self":[{"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/posts\/23023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/comments?post=23023"}],"version-history":[{"count":0,"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/posts\/23023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/media\/23024"}],"wp:attachment":[{"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/media?parent=23023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/categories?post=23023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scannn.com\/lv\/wp-json\/wp\/v2\/tags?post=23023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}