Texas orders grid audits for data center connections

Texas Gov. Greg Abbott has directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all data center projects now moving through ERCOT’s interconnection process, adding a new requirement before any of those projects can advance.

According to the governor’s office, the audit must be completed before any data center project is moved forward. The office said any project that does not meet requirements set by the PUCT, ERCOT, and state law will be denied access to the grid.

"Our top priority is to protect Texans’ safety and quality of life", said Abbott. "Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first."

The directive comes as Texas continues to draw data center development. ERCOT is currently weighing more than 474GW of connection requests, a figure the article says is more than five times the state’s record peak electricity demand. About 90 percent of that capacity is tied to data center load.

Abbott’s latest order follows his call in June for the PUCT and ERCOT to take immediate steps to protect residential ratepayers from the costs of data center expansion.

As part of the audit, the PUCT and ERCOT have been told to collect information on whether data centers are paying their own way and, depending on the state, whether they are providing their own power or relying on the grid. They are also to gather details on whether projects are bringing their own water supplies or reusing water rather than depending on local communities, whether they are taking measures to reduce effects on neighboring property owners and communities, and information on ownership and controlling interests.

The move also follows the approval of a new connection process proposed by ERCOT in June. Under that framework, projects enter a batch and ERCOT studies eligible projects to determine grid needs and capacity. Transmission capacity is then allocated based on what the grid can support, and ERCOT develops and publishes a transmission plan identifying needed upgrades.

Officials said the batch process is the first case of an independent system operator adopting such rules for large-load users. The framework is expected to serve as a foundational model for a broader process to be developed with stakeholders later this year.

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