Governor Greg Abbott of Texas has signed a directive imposing a moratorium on new grid connections for data centers. The decision comes after the Public Utility Commission of Texas (PUCT) found massive non-compliance with requests for water and energy consumption data. More than 1,800 projects, 90% of which are data centers, are now subject to a thorough audit before receiving approval from ERCOT (Electric Reliability Council of Texas).
Power demand five times higher than peak record
According to data reported by The Texas Tribune, the combined electricity demand requested by these projects reaches 474 gigawatts. This figure is five times higher than the highest peak demand ever recorded by ERCOT and far exceeds forecasts for 2035. The governor stated that the priority is to protect Texans' safety and quality of life, and that any project not complying with state rules will be denied grid access.
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PUCT survey ignored by most operators
The governor's move follows a PUCT survey involving 377 data center operators, who were asked to provide detailed information on water usage, energy, cooling systems, and community impact. Only 28 operators responded within the set timeframe. The moratorium remains in effect until a complete audit of application procedures is finished, which will also verify any tax breaks and facility ownership.
Impact on existing projects and exceptions
Although not a statewide moratorium like the one imposed by New York, Abbott's directive effectively halts progress on many projects that depend on ERCOT grid connection. Exceptions apply to data centers located outside ERCOT's jurisdiction, such as in El Paso, and those that generate their own power. These latter projects, not needing to connect to the public grid, can continue without disruption.
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Political reaction and critics
Groups opposing data center expansion in Texas consider the measure insufficient. Agriculture Commissioner Sid Miller described the directive as "all hat and no cattle," calling for legislative action with enforceable laws. State Representative Gina Hinojosa, Abbott's opponent in the November 2026 gubernatorial race, accused the governor of turning Texas into the "Wild West" of data centers and accepting millions from the industry. Meanwhile, the freeze may cool enthusiasm for new builds but does not stop already approved projects.
