Texas Has 5 New Rules for Data Centers as AI Backlash Grows

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Texas Governor Greg Abbott has ordered a pause on data center approvals and directed the Public Utility Commission of Texas (PUCT) and ERCOT to audit all data centers advancing through the interconnection process. These facilities must now publicly disclose information on five areas: public funding, power use, water consumption, community impact, and ownership. ERCOT is currently reviewing over 474 gigawatts of connection requests, with data centers accounting for approximately 90 percent of those requests, more than five times the state’s record peak demand. Any project that fails to meet PUCT, ERCOT and state law requirements will be denied connection to the Texas grid.

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