Texas Halts New Data Center Grid Connections Amid Surging Power Demand

Texas has imposed a moratorium on new power grid connections for data centers, just months after Governor Greg Abbott touted the state as the epicenter of AI development. The governor ordered regulators and ERCOT to conduct a comprehensive audit of data centers in the interconnection process, citing concerns about grid and community impacts. The state, which has aggressively attracted data centers with cheap land, tax breaks, and fewer regulations, is on track to become the largest US data center market, surpassing Virginia.