Texas has halted approvals for new data centers seeking to connect to the ERCOT grid, as announced by Governor Greg Abbott on August 3. This pause will remain in effect until state agencies complete audits to evaluate various factors, including tax incentives, power and water usage, and community impact. Notably, the order does not prohibit data centers that generate their own power on-site.
President Donald Trump criticized the decision, stating that it is a mistake for Texas to reject data centers, which he believes could surpass the oil industry's significance. He emphasized the economic benefits that data centers can bring to communities, suggesting that if he were in a governor's position, he would actively seek to attract such projects.
Abbott's spokesperson, Andrew Mahaleris, explained that the pause was necessary due to a lack of information from the industry, with fewer than 10 percent of data centers providing the requested data on their consumption. ERCOT is currently monitoring over 1,800 projects, which represent a capacity demand exceeding five times the grid's peak.
The governor's office and the White House have not indicated any changes to the current order, which remains under review.
Frisco is about 26 miles north of Dallas.
