Governor Greg Abbott Pauses Texas Data Center Grid Connections

Governor Greg Abbott ordered a moratorium on August 3, 2026, pausing the approval of new data center connections to the Texas electric grid. He directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct comprehensive audits of projects in the interconnection queue. This directive follows an unprecedented surge of 474 gigawatts in connection requests—roughly five times the state's record peak demand—with data centers accounting for 90 percent of those requests.

To proceed, developers must disclose project ownership, public financial assistance, projected power and water consumption, cooling technologies, and community impact mitigation plans. Abbott stated that any project failing to comply with state law or agency requirements must be denied grid connection to protect the safety and quality of life for Texans. In response, ERCOT has postponed its Batch Zero transmission planning study, delaying power allocation for up to 200 GW of potential projects.

The move follows earlier regulatory actions, including a July 24 PUCT approval for a 260-MW AI data center that mandated the facility be capable of full load curtailment within 30 minutes during grid emergencies.

Critics have dismissed the governor's action as insufficient. State Representative Gina Hinojosa called for a full legislative moratorium, arguing that data centers are guzzling water and electricity while residents have no say. Texas Department of Agriculture Commissioner Sid Miller characterized the directive as empty political rhetoric without legislative backing. Meanwhile, the nonprofit Save Cedar Creek Lake urged the governor to expand the audit into a formal moratorium before the scope of the reviews hardens.