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Texas says data centers must pass an audit before connecting to the grid

Texas will require new data center projects to pass a utility audit before they can connect to the state grid.

WHY IT MATTERS

Engineers will need to collect and submit detailed information on incentives, grid reliance, water use, and community impact, adding a new compliance step that can delay project timelines. The audit could push developers toward on-site power generation or locating outside ERCOT’s jurisdiction to avoid the review.

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The three things worth knowing

01

The Public Utility Commission of Texas and ERCOT must audit each new data center before grid interconnection.

02

Applicants must disclose state and local incentives, expected grid draw, water consumption, and plans for monitoring noise and other community effects.

03

The audit’s duration is undefined, but it could slow approvals for a market handling hundreds of gigawatts of new power requests.

THE CLUSTER

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