Texas Governor Abbott Pauses Data Center Interconnection Approvals Amidst Grid Strain and Heat Concerns
Texas Governor Greg Abbott has ordered a comprehensive audit of data center projects seeking interconnection with the state's power grid, ERCOT, and has paused all new approvals until the review is complete. This action comes in response to growing pressures on the grid, exacerbated by historic heatwaves and the increasing energy demands of data centers. Texas has experienced significant population growth and a surge in data center development, with possible projects totaling 474 gigawatts in the pipeline—more than five times ERCOT's July peak demand. In June, Governor Abbott directed the Public Utility Commission (PUC) and ERCOT to prevent data centers from shifting infrastructure costs to residential ratepayers and promised legislation addressing their added generation, water-efficient cooling, usage reporting, community impacts, and tax incentives. Senate Bill 6, effective June 20, 2025, already standardizes ERCOT interconnection for large users, mandates cost sharing, and allows curtailment during grid... 
