Gov. Greg Abbott halts new data centers as electricitydemand surges: Texans must come first

Texas Gov.Greg Abbott pumped the brakes on new data centers that threaten to overwhelm the state’s electrical grid, following his push to ban the facilities in the rural part of the state.

Abbott paused approvals for the new centers until there’s a review of those that already requested to connect to the Lone Star State’s grid operator, ERCOT.ERCOT is considering more than 474 gigawatts of requests — more than five times the state’s record peak electricity demand.The governor, on Monday, directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to deny grid connection requests for any project that doesn’t meet state requirements, Axios reported. About 90% of new connection requests to the Texas grid are from data centers, according to Abbott, who has previously signaled an interest to make data center regulation a top priority as he seeks reelection ahead of a new legislative session next year.Abbott is seeking information from data centers requesting connection to Texas grids, including: if the data center plans to provide some of its own electricity; the center’s estimated annual and peak electric consumption as well as their water consumption and its sources.“Our top priority is to protect Texans’ safety and quality of life,” Abbott said in a statement, the outlet reported. “Texans must come first,” he declared.

The Data Center Coalition is “hopeful” the directive from Abbott “will help separate those who are responsible water and energy stewards from those who are not,” Dan Diorio, executive VP of state policy and government affairs, told Axios. “Done correctly, this review can showcase the good actors in the data center industry rather than delaying them unnecessarily,” Diorio added.Abbott’s push for grid request denials comes after he called for a ban on data center developments in rural Texas last week.“I made clear already: Any AI data center even thinking about...