Texas launches massive data center audit

The state is reviewing 461 proposed data centers seeking grid connections, examining their electricity demand, water use, taxpayer incentives and community effects before projects advance.

ERCOT requests information from 461 developers

The Electric Reliability Council of Texas issued a formal request to developers of data centers seeking at least 25 megawatts. The review includes 247 projects seeking 75 megawatts or more and 214 seeking between 25 and 75 megawatts.

October 12 deadline for developer responses

Data center developers must submit complete responses, supporting documentation and notarized attestations by 5 p.m. on October 12. Failure to respond will be reported to the Public Utility Commission and the governor's office.

Nine areas under examination

ERCOT's survey covers facility information, development reasons, public financial assistance, grid electricity reliance, water sources and consumption, cooling technologies, community effects, ownership and certification.

Governor Abbott ordered the audit

On August 3, Governor Greg Abbott directed the Public Utility Commission and ERCOT to conduct a comprehensive verification and audit of data centers moving through the interconnection process.

“Our top priority is to protect Texans' safety and quality of life. 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.”

474 gigawatts of grid requests pending

ERCOT was considering more than 474 gigawatts of requests to connect to the grid, more than five times the state's record peak electricity demand. Officials caution that some projects may never be built or require substantially less power.

Water consumption under separate scrutiny

On September 14, Abbott issued a directive instructing the Texas Water Development Board to enforce reporting requirements for major water users and coordinate with ERCOT's data center review.

Water demand varies by facility design

Water consumption differs significantly among data centers depending on cooling technology, climate, facility design and whether systems reuse water. ERCOT incorporated water questions into its statewide survey.

Major companies commit to state standards

OpenAI, Oracle, Meta, QTS, Google, Rowan, CleanSpark, Amazon, Lancium, Cipher Digital, Stack Infrastructure, Anthropic and Nightpeak Energy have publicly agreed to comply with Texas data center standards.

North Texas sees intense local debate

Residents and local officials in North Texas have debated proposed data center developments over concerns including noise, land use, electricity consumption, water use and proximity to homes.

Report due by December 10

ERCOT and the Public Utility Commission plan to publish conclusions from the survey by December 10. Individual company responses will remain confidential, but information may be released in aggregate.

Clearer picture of resource demands ahead

The audit should give state officials a clearer picture of how much electricity and water proposed data centers could consume, what public assistance they have received and how development could affect Texas communities.