Around 48% of proposed data centers in the nation are located in the south. (Adobe Stock)
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By Freda Ross
Aug 7, 2026
All new proposed data centers in Texas must pass an audit by the Public Utility Commission and the Electric Reliability Council of Texas before the projects can move forward.
Gov. Greg Abbott gave the order at the beginning of the month, saying it is designed to protect the power grid. Texas has the second highest number of data centers in the country. As the debate over the centers’ use of energy continues, a recent report from the nonpartisan energy and climate policy think tank Energy Innovation found renewable energy can power the facilities cheaper than fossil fuels.
Brendan Pierpont, director of electricity for Energy Innovation, said renewables would reduce costs nationwide by about 17%.
“The fossil fuel pathway would add around $30 billion per year to overall national electricity costs. Doing this with clean energy is about $5 billion cheaper,” Pierpont explained.
The council is currently considering requests to add almost 500 gigawatts of power to the Texas grid. Approximately 90% of the new power requests are from data centers. Officials said the load could endanger the reliability and stability of the grid.
There are currently 296 data centers operating across the Lone Star State and there are plans to open 170 more. Pierpont urged policymakers to fast-track renewables on the grid.
“That more cost-effective pathway involves building solar energy storage and wind and deploying those quicker, having more efficient local siting and permitting processes,” Pierpont outlined.
The Trump administration argued fossil fuels are more reliable and have worked to undermine renewable projects, even paying companies to abandon wind energy projects.
