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Texas Pauses New Data Center Power Connections Amid Surging Demand

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Texas Governor Greg Abbott has ordered a moratorium on new power grid connections for data centers, directing regulators and ERCOT to audit all projects in the interconnection queue. The move comes less than a year after Abbott described Texas as the “epicenter of AI development.” The state has long attracted data center growth through cheap land, abundant energy, tax breaks, and lighter regulations. Texas is now projected to surpass Virginia as the largest US data center market.

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