Texas, the largest US data center market, has temporarily halted new power grid connections for data centers. Governor Greg Abbott directed state regulators and ERCOT to audit all pending interconnection requests, requiring developers to provide more details on grid and community impacts.
The move comes less than a year after Abbott touted Texas as the epicenter of AI development. The state's growth in data centers has been fueled by cheap land, plentiful energy, tax breaks, and lighter regulations, putting it on track to overtake Virginia as the nation's top data center hub.
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