Governor Abbott Pauses Data Center Grid Connections Amid Land Disputes

Governor Greg Abbott ordered an audit of data centers seeking grid connections, forcing the Electric Reliability Council of Texas to pause its Batch Zero Interconnection Study. The move comes as rural residents pressure state leaders to scrap or delay the construction of high-capacity 765 kilovolt transmission lines due to concerns over property rights and land use.

A bipartisan group of 30 representatives, including Lieutenant Governor Dan Patrick, has called on the Public Utility Commission of Texas to deny pending transmission line applications. The commission is expected to reach final decisions on five of these applications in the coming months.

Industry groups, including the Texas Oil and Gas Association, warn that these delays threaten economic growth in the manufacturing and energy sectors. They caution that the Permian Basin risks rolling blackouts by next summer, noting that the region currently relies on portable generators that cannot support long-term growth. Public Utility Commission of Texas Chair Tom Gleeson stated that electricity must be delivered to customers in the Permian.