Texas Governor Greg Abbott has ordered a halt on new data center approvals, pausing their connection to the state's power grid until comprehensive audits are completed. Under the new directive, state regulators—specifically the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT)—are required to review all pending data centers.
The directive specifically mandates that regulators audit both the energy and water usage of these facilities before any new operations are allowed to join the state's infrastructure. The announcement was publicly issued on August 3, 2026, amid growing scrutiny over the resource demands of the growing data center industry in Texas.
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