ERCOT · PUCT

Texas power demand just hit a record — so the state hit pause on new data centers

ERCOT's grid hit an all-time peak of 91.1 gigawatts in July and now forecasts demand could double within six years — but the interconnection queue got so large (474+ GW, ~90% of it data centers) that Governor Abbott ordered ERCOT and the PUCT to audit roughly 250–300 pending projects before approving any more. In September he went further and told the state environmental agency (TCEQ) to issue no permits for data-center projects until ERCOT finishes its audit.

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By the XAi desk · Published · Updated · 1 min read

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Why this matters

For the 806

Electricians, linemen, HVAC, controls, mechanical — Texas will need more of you, not fewer, whichever way the audit lands. The pause now reaches state permits as well as grid hookups. The directive is about new approvals and doesn't say what happens to work already under construction — that's the thing to watch.

What we know

  • ERCOT's grid hit an all-time peak of 91.1 GW on July 22, 2026, about 6% above the prior 2023 record.
  • ERCOT's own July 2026 forecast projects demand could roughly double within six years.
  • More than 1,800 projects sit in ERCOT's interconnection queue, representing over 474 GW of requested capacity — about 90% of it data centers.
  • On August 3, 2026, Governor Abbott ordered the PUCT and ERCOT to audit roughly 250–300 of those pending projects (over 200 GW) before approving any more hookups.
  • Follow-up reporting from The Texas Tribune (August 14) put the audit at up to 300 pending projects, mostly data-center proposals, before new approvals resume.
  • The EIA reported in early September that ERCOT's weekly average load was continuing near record highs as sustained heat kept demand elevated.
  • Update, Sept. 30, 2026: the Governor's office announced that Governor Abbott directed the Texas Commission on Environmental Quality (TCEQ) to halt all permits sought by data centers until ERCOT completes its audit, and said no state agency should move forward with data-center regulatory approvals until that information is in hand.
  • The same announcement says that on September 14 the Governor directed the Texas Water Development Board to compel data centers to comply with water-use reporting requirements and to partner with ERCOT on the audit.
  • TCEQ has been told to report to the Governor's office on its compliance by Monday, October 19, 2026. The Governor also said he will work with the Legislature next session to eliminate financial incentives for data centers.

What we don't know

  • How many of the requested 474+ GW will ever actually be built and running — historically, most announced capacity has not been (see our West Texas special report).
  • How long the state's audit will take, and whether it slows projects already under construction versus only new applicants.
  • Whether the TCEQ halt applies to projects already permitted or under construction — the announcement speaks to permits being sought.

Sources

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