Texas says data centers must pass an audit before connecting to the grid

August 4, 2026 Lauren Feiner

Graphic image of a data center.

Texas announced new a audit on data centers that could slow approval for new facilities seeking to connect to the state energy grid.

Governor Greg Abbott (R) on Monday directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to verify and audit new data center proposals, writing that the review is needed to "keep the grid stable and reliable." Data centers will need to provide information on state and local incentives they've received, how much they'd rely on the state grid, expected water consumption and sources, and how they plan to track community impacts including noise.

It's not cle …

Read the full story at The Verge.

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