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Texas Orders Review of Data Centers After 400 Gigawatts in Power Requests

Governor Greg Abbott directed state utility commissions to audit proposed new data centers after ERCOT received requests representing more than 474 gigawatts of new grid connections.

Title: Butterflies flutter amid the foliage of the South Texas Botanical Gardens and Nature Center in Corpus Christi, Texas
Physical description: 1 photograph : digital, tiff file, color.

Notes: Title, date, and keywords based on information provided by the photographer.; Gift; The Lyda Hill Founda
Title: Butterflies flutter amid the foliage of th…      Texas Data Center    Carol M. Highsmith / Wikimedia Commons (Public domain)
By Free News Press Editorial Team
Published August 5, 2026 at 1:18 AM PDT

Texas is home to 521 data centers. More are proposed. And the power demands attached to those proposals have now prompted action from the state's governor.

Governor Greg Abbott ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas, known as ERCOT, to conduct a review of any proposed new data centers in the state. The two bodies must collect information on ownership, finances, planned power use, water consumption and each center's approach to reducing negative effects on residents, according to a report by Engadget.

ERCOT is currently reviewing more than 474 gigawatts in requests to connect to the state's electric grid. The governor's office said more than 90 percent of those requests come from data centers. The office warned that "unprecedented load growth could endanger the reliability and stability of the Texas electric grid."

Texas currently ranks second in the country for data center concentration, behind only Virginia. The 521 existing centers already place significant demand on the grid. The proposed additions would dwarf current usage if built as planned.

Data centers have drawn opposition across the country over their resource demands. Concerns center on the strain they place on existing power infrastructure, as well as their water use for cooling systems. Measures aimed at limiting or blocking data center construction have appeared at the federal, state and city levels.

Abbott's order does not block new construction outright. It requires a structured review process before new centers can proceed.

The CyrusOne datacenter at 4211 Southwest Freeway in Houston, Texas. CyrusOne Enterprise Data Centers runs about 40 datacenters worldwide.
The CyrusOne datacenter at 4211 Southwest Freeway…      Texas Data Center    Tony Webster from Minneapolis, Minnesota, United States / Wikimedia Commons (CC BY 2.0)