Texas has stopped the approval of new data center connections to the state power grid as regulators conduct an audit of the anticipated consumption from these projects. This decision, announced by Gov. Greg Abbott in a letter to the Public Utility Commission of Texas and the Electric Reliability Council of Texas, impacts cities like McKinney through shared electricity supply rather than specific local developments.
The Electric Reliability Council of Texas is currently monitoring over 1,800 projects that are waiting to connect, which together would require more than 474 gigawatts of power. This demand is significantly higher than any previous peak the Texas grid has experienced. Approximately 90 percent of these requests originate from data centers, and the number of projects has nearly doubled since January.
The audit will focus on various factors, including power demand, water usage, noise, lighting, tax incentives, and ownership. This information is crucial because both residential areas and data centers draw from the same grid. As McKinney is about 12 miles east of Frisco, the residential growth in Collin and Denton counties adds to the load on the grid, potentially affecting reliability and costs.
While the pause affects grid interconnections, projects that are developing their own power generation can continue without interruption. No timeline has been established for the completion of the audits.
