Texas Orders Audits of All New Data Centers
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- Governor Greg Abbott announced Monday that all new data center projects in Texas must be audited by both the Public Utility Commission of Texas (PUCT) and ERCOT before moving forward.
- ERCOT's interconnection queue jumped from 233 gigawatts in January to 474 gigawatts today — more than five times its total peak demand — with about 90% of requests coming from data centers.
- Texas ranks second only to Virginia in data center count, having attracted operators including Google and Microsoft with its loose regulations and ample natural gas, wind, and solar supply.
- Utility-scale solar capacity in Texas grew fourfold between 2021 and 2025, yet electricity prices have been rising due to data centers and crypto-mining facilities, according to the EIA.
- Abbott's audit requirements will collect data on each proposed facility's on- and off-site electricity and water demand, noise mitigation, light controls, tax incentive use, and ownership details.
- A prior voluntary survey from Abbott's office saw most data center operators fail to respond, prompting the shift from voluntary to mandatory compliance.
Why it matters: Texas developers now face a new regulatory gate that could slow or reshape the state's standing as a top-tier data center hub behind Virginia. The audits force disclosure of water and power demand, tax incentives, and ownership — giving state regulators leverage they previously lacked through a light-touch voluntary approach.
