Texas wants much better information about the resources used by large data centers.
ERCOT has issued a new Request for Information covering data-center projects seeking to connect to the Texas power grid, with questions about electricity demand, onsite generation, water consumption, cooling technology, public incentives and community impacts.
The current request applies to specified data-center projects with requested loads of 25 MW or more that are moving through ERCOT’s interconnection process. Responses are due by October 12, 2026, and ERCOT plans to work with the Public Utility Commission of Texas to publish a report by December 10, 2026.
For a state already experiencing rapid growth in AI infrastructure, the audit could provide a much clearer picture of what these projects actually require from the grid and local water systems.
Why Is Texas Auditing Data Centers Now?
The scale of proposed electricity demand is unusual.
In August, the Texas governor directed the PUCT and ERCOT to conduct a broader verification and audit of data centers progressing through the interconnection process before projects move forward.
At the time, ERCOT was considering more than 474 GW of new load requests, according to the governor’s office, with roughly 90% attributed to data-center projects.
That number should not be interpreted as 474 GW of data centers that will definitely be built. Interconnection queues include projects at different stages, and many proposed loads may never reach commercial operation.
But the volume is large enough that grid planners need better information about which projects are realistic and how much electricity they may actually use.
👉 For more context on why these facilities create such large electrical loads, see [AI Data Center Power Consumption in the U.S.].
What Electricity Information Does Texas Want?
The audit goes beyond a simple nameplate power number.
Texas is asking developers to provide information about projected annual and peak electricity consumption, dependence on the ERCOT grid and plans for onsite generation or other measures that could reduce grid demand.
That distinction matters.
Two facilities could both request 200 MW of interconnection capacity but operate very differently.
One might rely almost entirely on the grid.
Another might install onsite generation, battery storage or other systems that reduce its net grid demand during certain hours.
ERCOT needs that information because grid planning depends on more than the maximum electrical connection.
Operators also need to understand when the load appears, how consistently it runs and how much flexibility the facility can provide during stressed conditions.
Texas Also Wants Much Better Water Data
Electricity is only half of the issue.
Large data centers can use water for cooling, although consumption varies significantly depending on cooling technology, climate and facility design.
Texas is now asking developers for projected annual and peak water consumption, the source of that water and the cooling technology planned for the facility.
The questions include whether a project will use approaches such as air cooling, closed-loop systems or other water-efficient cooling technologies.
The Texas Water Development Board is also participating in this process.
On September 14, the governor directed TWDB to coordinate with ERCOT and PUCT on the audit and to enforce existing water-use reporting requirements for major users, including data centers.
Why Water Reporting Became a Bigger Issue
Texas already collects water-use information for state planning, but officials have raised concerns about incomplete data from some data-center operators.
The state water plan depends on knowing how much water existing industrial users consume and how much future projects may require.
Without reliable data, planners have a harder time estimating demand in areas where municipal, agricultural and industrial users may all depend on the same water supplies.
The September directive therefore goes beyond requesting voluntary transparency.
TWDB was instructed to use its existing enforcement authority when covered users fail to comply with legally required water-use surveys.
The 25 MW Threshold Is Important
ERCOT’s current Data Center Impact RFI focuses on specified projects with loads of at least 25 MW.
Twenty-five megawatts is already a significant electrical load.
Many modern AI data-center campuses can be much larger, reaching hundreds of megawatts.
ERCOT’s April 2026 large-load data showed non-crypto data-center requests rising sharply across the planning horizon, with reported requests reaching about 99 GW for 2028 and considerably more in later years.
Those figures represent submitted load requests rather than guaranteed future consumption, but they show why Texas wants more detailed project-level verification.
The Audit Is About More Than Power and Water
ERCOT is also asking about:
- public grants, tax incentives and abatements,
- project ownership,
- onsite power generation,
- cooling technology,
- water reuse,
- noise,
- lighting,
- traffic,
- setbacks,
- and emergency-response coordination.
That makes this broader than a normal utility interconnection study.
Texas is trying to understand how large data centers affect both state infrastructure and surrounding communities.
The state has also directed utilities and grid operators to examine whether data centers are paying the infrastructure costs required to serve them rather than shifting those costs to residential and small-business customers.
What Happens If a Data Center Does Not Provide the Information?
For projects covered by the ERCOT audit, failure to complete required verification can prevent the project from advancing through the interconnection process.
The governor’s August directive states that projects that fail to comply with the audit requirements can be denied connection to the ERCOT grid.
Water reporting can have separate consequences.
The September directive says certain failures to complete required TWDB water-use surveys can trigger enforcement under Texas law, including potential effects on water permitting.
That gives Texas two different enforcement paths:
grid interconnection through ERCOT and PUCT, and water-use compliance through TWDB.
Why This Data Matters for Grid Planning
From an electrical planning perspective, the most useful part of this audit may be the difference between a requested load and a realistic operating load.
A developer may request hundreds of megawatts years before the project reaches full operation.
Some projects may be delayed.
Some may be built in phases.
Others may add onsite power, batteries or flexible-load controls.
Accurate information helps utilities determine how many substations, transformers, transmission upgrades and generation resources are actually needed.
Without that information, there is a risk of either building too little infrastructure or investing in equipment for demand that never arrives.
My View From the Electrical Construction Side
From an electrical construction perspective, the combination of power and water information makes sense.
A large data center is not only a building filled with servers.
Its operation depends on a much larger system that can include high-voltage utility connections, substations, transformers, switchgear, backup generation, battery systems and large cooling equipment.
The electrical and cooling designs also affect each other.
A more water-efficient cooling system can require different electrical equipment and energy use than a water-intensive design.
For grid and infrastructure planners, knowing only the maximum MW request is not enough.
They need a clearer picture of how the entire facility is expected to operate.
Final Thoughts
Texas is moving from estimating data-center growth to asking developers for detailed operating information.
ERCOT’s new RFI seeks electricity demand, onsite generation, water sources, water consumption, cooling technology and other project details from covered data centers of 25 MW or more.
Responses are due October 12, and the state expects an analysis by December 10.
The results should provide a better picture of how much of Texas’ future electricity and water demand is tied to data-center development and how realistic the current project pipeline actually is.
Sources & Official References
This article was researched using official ERCOT, Texas Governor and Texas grid-planning materials covering the 2026 data-center audit, electricity-demand requests and water-use reporting requirements.
ERCOT — Data Center Impact Request for Information
https://www.ercot.com/about/legal/data-center-impact-rfi
ERCOT — September 14, 2026 Market Notice on Data Center State and Community Impact RFI
https://www.ercot.com/services/comm/mkt_notices/M-B091426-01
Office of the Texas Governor — Comprehensive Data Center Audit Directive, August 3, 2026
https://gov.texas.gov/news/post/governor-abbott-directs-comprehensive-data-center-audit
Office of the Texas Governor — Data Center Water Reporting Enforcement Directive, September 14, 2026
https://gov.texas.gov/news/post/governor-abbott-directs-twdb-to-penalize-data-center-reporting-failures
Office of the Texas Governor — Data Center Infrastructure Cost Directive
https://gov.texas.gov/news/post/governor-abbott-directs-puc-and-ercot-to-shield-texans-from-data-center-infrastructure-costs
ERCOT — April 2026 CEO Update, Large Load RFI Data
https://www.ercot.com/files/docs/2026/04/15/12-CEO-Update.pdf
Sources checked September 21, 2026.
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