Texas regulators are reviewing data center projects seeking connection to the state’s electric grid following a directive from Governor Greg Abbott requiring a comprehensive audit of projects advancing through ERCOT’s interconnection process. The review will evaluate factors including electricity demand, generation plans, water use, community impacts, public incentives, and ownership information. Projects that fail to comply with audit requirements could be denied connection to the grid.

The directive comes as ERCOT evaluates approximately 474 GW of requested new load. According to the Governor’s office, roughly 90% of those requests are associated with data centers, a volume that exceeds five times ERCOT’s record peak demand.

ERCOT officials have indicated the audit may affect the timing of certain planning activities, including large-load interconnection studies, load forecasting, and reliability assessments while the review is underway.