The state of Texas has put a hold on approvals for new data centers connecting to the electrical grid, focusing on water usage and tax incentive disclosures. This directive, issued by Governor Greg Abbott, affects projects until audits are completed, impacting at least six data centers planned near Fort Worth, about 43 miles from Aubrey.
Data centers can consume millions of gallons of water daily for cooling, a significant concern given North Texas's water allocation and long-term planning needs. The audits will evaluate various factors, including electricity demand and water use, as well as ownership details and tax incentives associated with these large projects.
Currently, there are over 248 data center projects proposed across Texas, with the Dallas-Fort Worth area ranking as the second largest data center market in the nation. The Electric Reliability Council of Texas (ERCOT) is monitoring more than 1,800 projects in its connection queue, which collectively exceed five times the grid’s record peak demand.
Abbott noted that around 90 percent of new requests are for data centers, prompting the need for thorough regulatory assessments.
