tech
Texas halts new data centers as governor calls for audits
Tech companies and developers have been scouring the U.S. 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.
TL;DR
- Texas Governor Greg Abbott is requiring audits for all new data center projects.
- The state's grid operator, ERCOT, has seen its interconnection queue for new projects more than double in less than six months, with 90% of requests from data centers.
- The proposed projects could overwhelm the Texas grid, representing more than five times ERCOT's total peak demand.
- Data centers and crypto-mining facilities are contributing to rising electricity prices in Texas.
- Abbott is directing regulators to collect detailed information on proposed data centers, including energy and water demand, and use of tax incentives.
- Texas has historically favored lighter regulations, but data centers have become a contentious issue.
- The new audit requirement is a more forceful approach after a voluntary survey yielded poor response rates.