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August 4, 2026
Regulation & Policy

Texas halts new data centers as governor calls for audits

Overview

Tech companies and developers have been scouring the U. for places to build data centers, and they've been drawn to Texas' loose regulations and seemingly abundant power supply. But even Texas can be pushed to the brink.

Key Takeaways

  • Only Virginia hosts more data centers than Texas.

    Governor Greg Abbott announced Monday that all new data center projects will need to be audited by both the Public Utility Commission of Texas (PUCT) and the state's grid operator, the Electric Reliability Council of Texas (ERCOT).

  • About 90% of those are data centers, according to the grid operator.

    Some of those projects are simply paper proposals at this point.

  • Utility-scale solar capacity grew fourfold between 2021 and 2025.

    Meanwhile, electricity prices declined over much of that time, according to a report from Amperon.

  • Houston famously lacks a zoning code , and the state has a business-friendly regulatory environment .

    But data centers have become a flash point across the country, including in Texas.

  • He received his PhD in environmental science, policy, and management from the University of California, Berkeley, and his BA degree in environmental studies, English, and biology from St.

Stats & Key Facts

  • #Today, Abbott's office said ERCOT is tracking 474 gigawatts of new connection requests.
  • #About 90% of those are data centers, according to the grid operator.
  • #Utility-scale solar capacity grew fourfold between 2021 and 2025.
  • #De Chant is also a lecturer in MIT's Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism.

Tech companies and developers have been scouring the U. for places to build data centers, and they've been drawn to Texas' loose regulations and seemingly abundant power supply. Only Virginia hosts more data centers than Texas.

In January, ERCOT had 233 gigawatts of projects waiting to connect to its grid. In less than six months , that figure had more than doubled. Today, Abbott's office said ERCOT is tracking 474 gigawatts of new connection requests.

About 90% of those are data centers, according to the grid operator. Some of those projects are simply paper proposals at this point. Because queues for grid connections have grown so long, the first action many developers take is to get in line.

For more details please read the original article at TechCrunch AI.

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Originally published by TechCrunch AI
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