Order directs verification of tax breaks, power use, water, ownership

Under the order, the Public Utility Commission of Texas and the Electric Reliability Council of Texas must verify what developers disclose before new data centers can connect to the state’s electric grid. Abbott, who announced the pause Monday, said any project that does not pass the “comprehensive verification and audit” should be denied a grid connection.

The disclosures the agencies will check span the tax breaks a project would receive, its projected power use and generation, water use and cooling operations, steps intended to limit impacts on surrounding communities, and who owns the facility. The governor did not say how long the audit would take.