Governor Greg Abbott Orders ERCOT and PUCT Audit of Large-Load AI Data Center Grid Queue

AUSTIN, Tex. — Governor Greg Abbott has formally directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to launch a rigorous audit of all large-load computing and artificial intelligence data center projects currently in the state interconnection queue.

Protecting State Power Grid Stability

The executive directive requires regulators to verify the operational readiness, financing, and dispatchable power plans for tens of gigawatts of proposed computing facilities seeking connection to the ERCOT grid over the next five years.

"Texas is the energy capital of the world and a premier destination for technological innovation, but our primary duty is ensuring reliable, affordable power for Texas families and businesses," Abbott stated from the State Capitol.

Texas Energy Fund and Dispatchable Power

The order follows the state's ongoing rollout of the $10 billion Texas Energy Fund (TxEF), which provides low-interest state loans to build new gas-fired dispatchable power generation. Regulators will evaluate whether large data center operators must co-locate dedicated on-site power generation rather than drawing exclusively from the public grid during peak summer and winter demand.

Implementation Roadmap

ERCOT and the PUCT must deliver an interim audit report to the Governor's Office and the Texas Legislature ahead of the upcoming legislative session, detailing recommended grid connection standards for industrial computing loads.