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Texas has a math problem. The state’s power grid is handling a peak demand of around 91 gigawatts, yet developers have lined up to connect more than 474 GW worth of projects, the overwhelming majority of them data centers. That gap, five times over, is precisely why Governor Greg Abbott stepped in on August 3, 2026, to freeze new approvals and demand answers.
Abbott’s directive mandates a comprehensive audit of every data center project sitting in the interconnection queue managed by the Public Utility Commission of Texas and the Electric Reliability Council of Texas. No new project gets a green light until the review is complete.
How the queue got this out of hand
Back in April 2026, ERCOT’s large-load interconnection queue sat at roughly 410 GW, with about 87% of that tied to data centers. By August, the queue had climbed to 474 GW, with approximately 90% of the demand, around 420 GW, attributed to data centers alone.
ERCOT’s peak demand of 91 GW was recorded on July 22, 2026, just days before Abbott’s audit directive landed. ERCOT had already begun pulling back before Abbott’s order arrived, postponing its review of so-called “Batch Zero” project approvals that had been scheduled for August 7.
What the audit actually covers
The review goes beyond simple power math. Abbott’s directive asks regulators to examine power demand projections, water usage and sourcing, cooling system technology, tax incentives tied to individual projects, community impacts, and ownership structures.
Abbott had laid some groundwork before the August order. On June 10, 2026, he directed state agencies to develop mechanisms protecting residential ratepayers from being asked to subsidize the grid infrastructure upgrades that new data centers require. The August audit takes that ratepayer protection instinct and extends it into a full regulatory pause.
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