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Texas Halts New Data Center Power Connections Amid Soaring Demand

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Texas Governor Greg Abbott has ordered a moratorium on new power grid connections for data centers, requiring developers to provide more details on how their projects could affect the grid and local communities. He directed the Public Utility Commission of Texas and ERCOT to conduct a comprehensive audit of data centers already in the interconnection process.

The state has aggressively courted data centers with cheap land, energy, and tax incentives, putting it on track to surpass Virginia as the largest US data center market. The pause highlights mounting concerns about overwhelming demand on Texas’s isolated power grid.

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