By Julie Tomascik
Editor

Data center projects seeking access to the Texas electric grid will undergo a comprehensive audit before they can move forward.

Gov. Greg Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to verify information submitted by every data center advancing through the grid interconnection process.

Projects that do not comply with state law and requirements established by the agencies will be denied access to the grid.

“Our top priority is to protect Texans’ safety and quality of life,” Abbott said. “Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first.”

ERCOT is considering more than 474 gigawatts of requests to connect to the grid. That is more than five times the record peak electricity demand for ERCOT.

Data centers account for about 90% of the proposed new demand, and the unprecedented requests could threaten the reliability and stability of the electric grid, according to the governor’s office.

Abbott also directed the PUCT and ERCOT to obtain additional information from each data center project.

Texas Farm Bureau (TFB) previously submitted a letter to Lt. Gov. Dan Patrick and House Speaker Dustin Burrows outlining concerns over the rapid expansion of data centers and urging a balanced approach that protects landowners, agriculture and the state’s economy.

“Farm Bureau appreciates the governor calling for additional information from data center developers,” Regan Beck, TFB director of Government Affairs, said. “Understanding the demands these projects place on the electric grid, water supplies and local communities helps ensure Texas can continue to grow without sacrificing the resources agriculture and rural communities depend on.”

Data center developers must disclose any state and local tax incentives, grants, abatements or other public financial assistance they have received or expect to receive.

Developers also must provide projected annual and peak electricity use and explain whether they plan to generate power on site or take other steps to reduce demand on the ERCOT grid.

The audit will examine how much water each project expects to use and where that water will come from. Developers must identify the cooling technology planned for the facility, including whether it will use air cooling, a closed-loop system or another water-efficient option.

PUCT and ERCOT also will review steps developers plan to take to reduce effects on nearby landowners and communities. Those measures may include noise and light controls, setbacks, traffic improvements and coordination with local emergency responders.

In addition, each project must disclose its ownership and controlling interests.

This audit builds on Abbott’s directive earlier this summer that called for data centers to pay for the electric infrastructure needed to serve their operations rather than passing those costs to residential customers.

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