The state of Texas has suspended the approval process for new data centers that connect to the state’s electric grid as regulators assess various impacts, including water usage and tax incentives. This directive was issued by Governor Greg Abbott on August 3 to the Public Utility Commission of Texas and the Electric Reliability Council of Texas.
Data centers can consume millions of gallons of water daily for cooling, with usage depending on the cooling technology employed. Closed-loop and air-cooled systems require significantly less water compared to evaporative cooling methods. This factor is crucial for North Texas, where water allocation is managed through regional providers and long-term planning is essential.
Across Texas, there are at least 248 data center projects in the pipeline, with six specifically located in the Fort Worth area. The Dallas-Fort Worth region ranks as the second-largest data center market in the nation.
The Electric Reliability Council of Texas is currently monitoring over 1,800 projects in its connection queue, which collectively represent more than 474 gigawatts of demand, far exceeding the grid's historical peak.
The audits mandated by the governor will evaluate electricity demand, water consumption, on-site generation strategies, noise and light control measures, tax incentives, and ownership information. A previous voluntary request for this data garnered minimal responses, prompting the need for a mandatory audit.
Sherman is about 74 miles northeast of Fort Worth.
