Governor Greg Abbott has announced a pause on new data center approvals in Texas, citing a lack of information from the industry. This decision, made on August 3, halts the connection of new data centers to the ERCOT grid until state agencies can conduct audits to evaluate various factors, including tax breaks, power and water consumption, and community impact mitigation efforts.
Abbott's spokesperson, Andrew Mahaleris, indicated that fewer than 10 percent of data centers had submitted the necessary power and water usage data requested by the state. He noted a significant increase in electricity demand, with ERCOT reporting a 500 percent rise in peak usage. The pause does not ban data centers outright and does not affect projects that generate their own power.
ERCOT is currently monitoring over 1,800 projects that represent more than 474 gigawatts of requested capacity, which exceeds five times the grid's record peak demand. Abbott has stated that approximately 90 percent of new connection requests originate from data centers. Projections suggest that water usage by data centers in Texas could reach between 29 billion and 161 billion gallons annually by 2030.
Little Elm is about 28 miles north of Dallas.
