Texas Governor Greg Abbott has directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of all new data center projects, as the state’s AI-driven infrastructure boom pushes its power grid toward its limits.
According to Abbott’s office, ERCOT’s interconnection queue has surged to 474 gigawatts of new connection requests, more than doubling since January, with roughly 90% of that demand attributed to data centers, many built to support AI workloads. That figure represents more than five times ERCOT’s total peak demand, raising concerns that even a fraction of these projects reaching completion could strain the grid significantly.
Texas has long attracted AI infrastructure investment from companies including Google and Microsoft, drawn by loose regulation and abundant natural gas, wind, and solar capacity. However, rising electricity prices, driven partly by data center and crypto-mining demand, have prompted Abbott to seek greater oversight.
The audit will require developers to disclose electricity and water usage, noise mitigation, lighting controls, tax incentive use, and ownership structures. The move follows a previous voluntary survey that saw limited industry participation, leading Abbott to pursue mandatory compliance instead.
