Texas grid operator ERCOT has paused connecting new large data centers while a state audit and a community impact review are completed, according to a report from the Daily Caller News Foundation republished by the Tennessee Star. Gov. Greg Abbott ordered the audit in August 2026. ERCOT was tracking about 474 gigawatts of large-power-user requests as of June 2026, roughly 90 percent of them from data centers. That is more than five times the state's all-time peak demand and up from 63 gigawatts in December 2024.
The report cites economist Jason Furman's analysis of Census Bureau data showing private data center construction spending rose about 64.5 percent after inflation between August 2025 and August 2026, reaching an annual rate near $85 billion. Private power construction grew about 4.1 percent over the same period, a figure that includes oil and gas projects.
National Rural Electric Cooperative Association CEO Jim Matheson said the grid can meet current demand for most of the year but will need more generation as data center growth continues, and that gas turbines are reportedly booked far into the future. He also warned that utilities could be left paying for plants built for data centers that later close, and said no single industry standard addresses that risk.
Cost effects remain disputed. PJM Interconnection's independent market monitor found data centers accounted for about $6.5 billion, or 40 percent, of the $16.4 billion cost of PJM's December 2025 capacity auction. The Data Center Coalition pointed to an E3 study finding no historical evidence that data centers raised residential electricity costs, and the report notes rates rose less than average in Texas and Virginia, which saw surging demand. Investor-owned utility capital spending is projected by the Edison Electric Institute to exceed $220 billion in 2026, up from about $178 billion in 2024.
Source: Tennessee Star (Daily Caller News Foundation) -- https://tennesseestar.com/economy/growing-data-center-demand-tests-americas-electric-grid/dcnf/2026/10/14/