Texas Mandates Audits for New Data Centers Connecting to Power Grid

Texas Governor Greg Abbott has directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to verify and audit new data center proposals before connecting to the state's power grid. The audits will require operators to disclose state and local incentives received, expected grid reliance, water consumption and sources, and plans for tracking community impacts including noise. The measure aims to ensure grid stability and reliability as data center demand surges, particularly for AI infrastructure projects.