Texas governor orders review of new data centers after grid overload concerns
Texas Governor Greg Abbott has directed utility regulators to scrutinize all proposed data center connections, as the state faces an unprecedented electricity demand. With 521 data centers and over 474 gigawatts of pending grid requests, officials warn of reliability risks.

Texas Governor Greg Abbott has ordered state utility commissions to conduct a review of any proposed new data centers. According to Engadget, the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) must now collect information about ownership, finances, planned power needs, water use, and measures to minimize negative impact on local residents.
The move comes amid concerns about rapid growth in data center development. Third-party statistics show Texas is home to 521 data centers, the second-highest number in the United States, behind only Virginia. ERCOT is currently reviewing more than 474 gigawatts of requests to connect to the electric grid, and over 90% of those requests are attributed to data centers. The governor's office stated that unprecedented load growth could endanger the reliability and stability of the Texas electric grid.
The order reflects a broader trend, as federal, state, and local authorities have already taken steps to limit or ban data center construction in some areas. Many US residents view data centers as a burden due to their heavy resource consumption and pressure on existing infrastructure. The audit is intended to give Texas officials a clearer picture of how future data centers would affect the state's power supply and environment.


