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Texas Governor Greg Abbott has ordered an audit of data centers seeking connections to the state’s power grid, pausing projects from advancing until regulators complete their reviews.
Bernstein analysts said the directive should have little direct effect on Bitcoin miners with existing operations or previously approved power capacity. Mining and AI projects still awaiting grid approval could face delays.
Abbott Orders Audit of 474GW Grid Connection Queue
Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to verify every data center advancing through ERCOT’s interconnection process.
ERCOT is considering 474 GW of connection requests, more than five times the grid’s record peak electricity demand. Data centers account for approximately 90% of the proposed load.
The audit will examine projects’ electricity and water requirements, on-site generation plans, public financial incentives, ownership, and measures intended to reduce disruption to surrounding communities.
Projects that fail to comply with state, PUCT or ERCOT requirements must be denied connections to the Texas grid.
ERCOT Pauses Batch Zero Before August Classifications
The directive prompted ERCOT to pause Batch Zero, its first grouped review of electricity users seeking connections of at least 75 MW.
ERCOT had planned to notify Batch Zero applicants of their project classifications during August. The process was created to assess available grid capacity, identify transmission upgrades and separate qualifying projects from the wider connection queue.
Bernstein Says Approved Bitcoin Mining Capacity is Unaffected
Bernstein said contracts already under execution within its mining coverage involve approved electricity capacity and are not affected by the audit.
The analysts said established Bitcoin miners and AI operators could benefit as the pause makes approved megawatts scarcer. Existing grid-connected campuses can also be repurposed or expanded for high-performance computing without starting as entirely new greenfield projects.
Projects dependent on new Texas connections remain more exposed. Bernstein identified pipeline developments awaiting ERCOT approval as the main source of potential delays.
Bitcoin mines can generally reduce their electricity consumption more readily than many conventional data centers, although ERCOT also allows large customers to pursue connection pathways that include agreed curtailment during grid constraints.
Texas has not announced how long the audit will take. Data center projects in the interconnection process cannot advance until PUCT and ERCOT complete their reviews.
