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Data Center Pause Puts Water Use Under State Review, With Six Projects Near Fort Worth

Abbott's directive orders regulators to measure water and power at proposed data centers before any new grid connections are approved.

Sasha Esparza

August 5, 20262 min read

Texas Gov. Greg Abbott. Photo: Gage Skidmore (CC BY-SA 3.0).
Texas Gov. Greg Abbott. Photo: Gage Skidmore (CC BY-SA 3.0).

The state has paused approvals for new data centers connecting to the Texas grid, and water is one of the things regulators have been told to measure.

Gov. Greg Abbott sent the directive Monday, Aug. 3, to the Public Utility Commission of Texas and the Electric Reliability Council of Texas. Until the audits are finished, new projects cannot move through grid interconnection.

The water question

Large data centers can use several million gallons of water a day for cooling, depending on the design. That figure varies widely, which is precisely why it is on the audit list alongside electricity demand.

Cooling technology is the variable. Closed-loop and air-cooled designs use far less water than evaporative systems, and the choice is made at the design stage rather than after a facility is running.

For North Texas, where surface water is allocated through regional providers and long-term supply planning runs on decade timescales, a new industrial user of that size is a planning input rather than a rounding error.

The local pipeline

At least 248 data center projects are planned across Texas, including six in the Fort Worth area. Regionally, 26 large campuses are tracked from Sherman to Waco and Weatherford to Terrell.

Dallas-Fort Worth is the second largest data center market in the country.

The grid figures

ERCOT is tracking more than 1,800 projects in its connection queue, over 474 gigawatts in total, which exceeds five times the grid's record peak demand. Abbott says about 90 percent of new requests are data centers.

What the audits cover

Regulators must collect electricity demand, water use, on-site generation plans, noise mitigation, light controls, tax incentives and ownership details.

A voluntary version of this request drew few responses, which the governor cited in ordering the mandatory audit. Projects that build their own generation and skip grid interconnection are not covered in the same way.

Sources

https://www.texastribune.org/2026/08/03/texas-data-center-project-audit-greg-abbott/

https://www.keranews.org/news/2026-08-04/data-center-approvals-in-texas-halted-until-audits-completed-gov-greg-abbott-says

https://techcrunch.com/2026/08/04/texas-halts-new-data-centers-as-governor-calls-for-audits/

https://www.houstonpublicmedia.org/articles/news/energy-environment/2026/08/03/558529/gov-greg-abbott-pauses-new-data-centers-until-ercot-puct-audit-energy-water-usage/

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Sasha Esparza

Sasha Esparza writes about community life, schools, public safety, and local events in Fort Worth.

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