Texas has paused new power grid connections for data centers after Governor Greg Abbott ordered a comprehensive audit of all projects in the interconnection process. The Republican governor directed the Public Utility Commission and ERCOT to verify how these facilities might affect the grid and local communities.
The move comes less than a year after Abbott called Texas the “epicenter of AI development,” as the state had aggressively attracted data centers with tax breaks and cheap land. Texas is now on track to overtake Virginia as the largest US data center market.
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