The state of Texas has suspended the approval process for new data centers connecting to the power grid, with a focus on assessing water usage and tax incentives. Governor Greg Abbott issued this directive on August 3, mandating that the Public Utility Commission and the Electric Reliability Council conduct thorough audits before any new projects can proceed.
Data centers can consume millions of gallons of water daily for cooling, a factor that varies significantly based on their design. The audit will evaluate both water consumption and electricity demand, as the choice of cooling technology impacts water usage substantially. In North Texas, where water resources are managed by regional providers, the introduction of large industrial users necessitates careful long-term planning.
Across Texas, there are at least 248 data center projects in the pipeline, including six located near Fort Worth. The Dallas-Fort Worth area ranks as the second largest market for data centers in the nation. ERCOT is currently monitoring over 1,800 projects, totaling more than 474 gigawatts, which is significantly higher than the grid's peak demand.
The audits will cover various aspects, including water use, electricity demand, noise control, and ownership details. A previous voluntary request for information yielded minimal responses, prompting the governor to call for mandatory audits.
Gunter is about 59 miles northeast of Fort Worth.
