Texas Announces Audit for AI Data Center Projects; Meta and Digital Realty Align with State Standards
Governor Greg Abbott of Texas has ordered an audit of data center projects in the state, aiming to address a surge in energy demand requests that far exceed current grid capacity. The Electric Reliability Council of Texas (ERCOT) began verifying these proposals on September 9 after receiving over 474 gigawatts in interconnection requests—five times higher than peak demand levels. Meta and Digital Realty have publicly supported Abbott’s initiative, signaling their commitment to comply with the new standards. Meta has pledged to cover all energy and water costs for its data centers rather than pass them on to consumers. This approach may give it an edge over smaller competitors unable to absorb such expenses. Meanwhile, Digital Realty stands to benefit from its established infrastructure and utility relationships if compliance becomes a barrier to entry for new projects. The audit could either strengthen the market position of compliant firms or delay AI expansion by slowing down grid access. Hedge fund activity suggests shifting positions in both companies ahead of policy changes.
Topics: AI infrastructure data centers grid access Texas energy policy