Texas Governor Greg Abbott has announced a moratorium on the approval of data centers in the state until regulatory agencies can audit proposed data centers seeking connection to the state’s electric grid.

Audit Requirements

The audit will require data center developers to provide information on tax breaks they will receive, power use and generation, water use and cooling operations, efforts to reduce impacts on local communities, and ownership of the facility. Any projects that fail the audit should be denied connection to the grid, according to Abbott.

The Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) will conduct the audit on all data centers advancing through ERCOT’s interconnection queue. ERCOT is currently tracking over 1,800 projects in the queue, representing over 474 gigawatts of electricity.

Background

The Texas Tribune has identified 335 data centers operating in Texas, with at least 248 planned data centers coming to the state. Lawmakers have spent much of this year seeking clarity about the facilities’ electricity use, water use, and access to tax incentives as the Legislature considers tighter regulation of the industry.

Abbott cited the failure of some data centers to comply with a recent PUCT survey measuring water and power usage as the reason the audit was needed. The survey collects information about a data center’s water consumption, cooling systems, water sources, electricity demand, and whether facilities are connected to the state’s electric grid or have their own on-site power source.

Original reporting: Texas Tribune (HLL/CB) — read the source article.