Texas says data centers must pass an audit before connecting to the grid

Texas Gov. Greg Abbott ordered regulators to audit new data center proposals before they can connect to the grid.

The review will require disclosure of incentives, grid dependence, water use, and community impacts.

The move could delay or limit new data center projects as Texas faces surging electricity demand and reliability concerns.

The Texas Public Utility Commission and ERCOT will help assess whether proposed projects can be safely absorbed by the grid.