Texas Governor Halts Data Center Grid Queue, Orders Subsidy Audit

✓What's documented Cites Gov. Greg Abbott's Aug. 3 letter to ERCOT and the PUCT, linked to the original PDF, plus ERCOT's own market notice delaying its review process.

Texas Gov. Greg Abbott ordered an audit of every data center in ERCOT's interconnection queue, which totals an estimated 474 GW, more than five times the state's record peak demand. ERCOT responded by delaying its Batch Zero transmission planning study, and the audit will examine which data center projects are paying their own way versus leaning on state tax incentives, grants or other public financial assistance.

• Interconnection requests total about 474 GW, of which Abbott's letter says roughly 90% are data centers.
• The audit will assess whether data centers are self-supplying power or depending on the ERCOT grid, and whether they are paying their own way or relying on state and local tax incentives, grants or abatements.
• ERCOT delayed its Batch Zero transmission planning study and will seek a good-cause exemption from the Public Utility Commission of Texas at its Aug. 20 meeting.
• The move follows New York's July pause on new data center approvals for up to a year.