On August 3, 2026, The Associated Press, carrying a Texas Tribune report by Paul Cobler, said Gov. Greg Abbott had announced a moratorium on approval of data centers until the Public Utility Commission of Texas and ERCOT can audit proposed facilities seeking connection to the Texas electric grid.
Abbott asked those agencies to require information on tax breaks, power use and generation, water use and cooling, efforts to reduce local impacts, and ownership, according to the AP/Texas Tribune report. Projects that fail the “comprehensive verification and audit” should be denied connection. “Simply put, Texans must come first,” Abbott said in a statement. “Our top priority is to protect Texans’ safety and quality of life.” He added, “Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid.”
ERCOT is tracking more than 1,800 projects in the interconnection queue, representing over 474 gigawatts, more than five times the grid’s record peak demand, according to ERCOT. Abbott said approximately 90 percent of the new power requests are data centers. ERCOT said it is postponing the Batch Zero transmission planning study.
The announcement is a directive, not a statute, and it is unclear how long the audit will take, the AP/Texas Tribune report said. Critics including Texas Agriculture Commissioner Sid Miller said it is not a substitute for legislation and comes up short of a true moratorium. “Without legislative action, this directive is all hat and no cattle,” Miller said. Some data centers are building on-site generation that bypasses traditional grid connection. ERCOT does not cover the entire state, including El Paso.
A PUCT survey conducted with the Texas Water Development Board found that of 377 companies notified, 28 responded. Rep. Brad Buckley called that participation “pretty pathetic.” The Texas Tribune identified at least 335 data centers operating in Texas and at least 248 planned. Data Center Coalition spokesman Dan Diorio said the review can showcase good actors if done correctly.
Buildtelligence published its operating read at buildtelligence.com/texas-data-center-pause: unmanaged AI load shows up as power, water, tax, and a public bill.
This is a grid story. A directive is not the same thing as a statute.
Sources
AP/Texas Tribune: apnews.com
Texas Tribune: texastribune.org
Buildtelligence: buildtelligence.com/texas-data-center-pause