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Texas Freezes New Data Center Connections Amid Audit of Water Use and Demand

Texas has paused new data center connections to assess their water and power demands.

Renata Ferris

August 5, 20261 min read

Texas Gov. Greg Abbott. Photo: Gage Skidmore (CC BY-SA 3.0).
Texas Gov. Greg Abbott. Photo: Gage Skidmore (CC BY-SA 3.0).

Texas has halted the approval of new data center connections to the state power grid as regulators conduct an audit of the anticipated consumption of these projects. This decision, made by Gov. Greg Abbott in a letter to the Public Utility Commission of Texas and the Electric Reliability Council of Texas, impacts areas like Richardson through the shared electricity supply.

Currently, ERCOT is monitoring over 1,800 projects awaiting connection, which together represent more than 474 gigawatts of power demand. Approximately 90 percent of these requests are from data centers, with the queue having nearly doubled since January when it stood at 233 gigawatts. However, not all projects in the queue will be built, as developers often submit multiple requests across different regions.

The audit will collect data on various factors, including power demand, water usage, noise, lighting, tax incentives, and ownership. This information is crucial as residential growth in Collin and Denton counties, coupled with industrial power demands, can affect grid reliability and costs. The pause specifically pertains to grid interconnections, while projects that generate their own power can continue without delay.

No timeline for the completion of the audits has been announced.

Richardson is about 15 miles south of Frisco.

Sources

https://www.texastribune.org/2026/08/03/texas-data-center-project-audit-greg-abbott/

https://www.keranews.org/news/2026-08-04/data-center-approvals-in-texas-halted-until-audits-completed-gov-greg-abbott-says

https://techcrunch.com/2026/08/04/texas-halts-new-data-centers-as-governor-calls-for-audits/

https://www.houstonpublicmedia.org/articles/news/energy-environment/2026/08/03/558529/gov-greg-abbott-pauses-new-data-centers-until-ercot-puct-audit-energy-water-usage/

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Renata Ferris

Renata Ferris writes about community life, schools, public safety, and local events in Richardson.

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