Texas halts power grid connections for new data centers

Fox - 4 News
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4 Video Views·Aug 4, 2026
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AI GeneratedGovernor Greg Abbott has directed Texas grid managers to audit all proposed data centers before they connect to the power grid. This shift in policy comes amid rising public opposition and concerns over surging electricity demand, with the governor now requiring developers to prove they can manage their own power, water, and community impacts.
Governor Greg Abbott wants the groups that manage the state power grid to audit
every new data center before connecting them to the grid.
It is the latest move from the governor's about face on data centers as people across
the state grow louder in their opposition. Fox 4's Vanya Castillo reports.
Governor Greg Abbott announced Monday he will direct the state's grid managers ERCA
and the Public Utility Commission to audit any proposed data centers.
Last month he announced he was going to use the agencies to regulate data centers.
I've made clear already, any AI data center even thinking about coming here,
they got to bring their own money, bring their own power, reuse their own water,
and do it in a way that reduces the cost of electricity for residents across our state.
Recent forecasts from ERCA show demand on the state's power grid is set to double over the
next five years or so, and data centers would account for a large portion of that growing demand.
In a statement Monday, the governor wants to know whether developers will generate their own power
or rely on the grid. He also wants information on noise, traffic, and impacts on neighborhoods.
The state will also be collecting information on who owns each project.
But all this wasn't the governor's position as recently as last year.
They will be net positive to the power grid.
Something his Democratic opponent for Governor Gina Hinojosa pounced on Monday,
saying in a statement, this is the same governor who spent recent months branding
Texas as the epicenter of AI development and championing the industry his giveaway attracted.
Data centers have been a hot topic in towns and cities across the state.
On Sunday, Keller residents met with the mayor to share frustrations over a proposed
data center in neighboring Wesley. For me, it's more about how is the
quality of life? What is my literally my day to day going to be like?
What I'm asking is what's really our timeline and our shot clock to object to this?
And Fort Worth City Council members recently signed a letter asking for a temporary moratorium
on new data centers. Proposed projects have also faced opposition in the city of Red Oak
and in Hill County. We kind of hope that the,
you know, some of our government officials all the way up to the governor will get involved.
Vania Castillo, Fox 4 News.
