Texas Pauses Transmission Line Buildout Amid Data Center Audit

The Electric Reliability Council of Texas has paused the construction of high-capacity transmission lines in West Texas. This suspension follows an announcement by Governor Greg Abbott that the state will conduct an audit of all data centers connecting to the electrical grid, reflecting growing legislative and official opposition to the rapid expansion of data center construction.

The proposed 765-kilovolt lines were previously approved by the Public Utility Commission of Texas to address grid vulnerabilities exposed during Winter Storm Uri in 2021. While the Public Utility Commission holds the final decision on the project, the grid operator warns that halting the buildout could result in rolling blackouts across West Texas.

Industry stakeholders have expressed concern over the pause. The Texas Oil and Gas Association argues that the region currently relies on portable generators, which are insufficient to support long-term production growth in the energy basin. Governor Abbott has not yet taken a formal position on the transmission buildout itself, focusing instead on the data center audit.