Texas Governor Orders Audit of Data Centers Amid Nationwide Backlash
Governor Greg Abbott of Texas has mandated an audit of all data centers pending connection to the state's power grid, effectively pausing ERCOT's evaluation of large electricity users. Currently, ERCOT is handling requests for 474 gigawatts of new power, mainly from data centers. This decision comes in the wake of New York's statewide ban on new hyperscale data centers. The purpose of the audit is to distinguish between legitimate projects and those that are merely speculative, as ERCOT cautions that demand projections may be overstated. This delay could affect financing, raising fears that lenders might pull out. Polls reveal that 70% of Americans are against local data centers, with 63% favoring a pause. In June, Alexandria Ocasio-Cortez proposed a federal moratorium bill.
Key facts
- Texas Governor Greg Abbott ordered an audit of all data centers awaiting grid connection.
- ERCOT is processing requests for 474 gigawatts of new electricity, 90% for data centers.
- New York imposed the first statewide moratorium on hyperscale data centers.
- Local pauses have been enacted from Minneapolis to rural Alabama.
- Data centers are a bipartisan issue, uniting Bernie Sanders and Steve Bannon.
- Gallup poll: 70% of Americans oppose a data center in their area.
- Data for Progress poll: 63% support a pause on construction.
- Alexandria Ocasio-Cortez introduced a federal moratorium bill in June.
Entities
Institutions
- ERCOT
- Gallup
- Data for Progress
- xAI
Locations
- Texas
- New York
- Minneapolis
- Alabama
- Kansas
- Tennessee
- Memphis
Sources
- Quartz —