Texas Pauses New Data Center Power Connections Amid Surging Grid Demand

Texas has halted new data center connections to its power grid after Governor Greg Abbott ordered regulators to audit all pending interconnection requests. The moratorium, announced on August 3, requires developers to provide more details on how their projects might affect the grid and local communities.

Abbott’s directive applies to the Public Utility Commission of Texas and ERCOT, which operates the state’s independent grid. The move comes as Texas, long courted for its cheap land, energy resources, and business-friendly incentives, is projected to overtake Virginia as the largest US data center market.

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