Texas, the fastest-growing US market for data centers, has temporarily halted new grid connections for these facilities. Governor Greg Abbott ordered regulators and ERCOT to conduct a comprehensive audit of all data centers in the interconnection queue, requiring developers to provide more information about their projects' effects on the power grid and local communities.
The state had aggressively attracted data center investment through cheap land, energy resources, and incentives, putting it on track to overtake Virginia as the largest US data center market. The moratorium will remain in place until the audit addresses the overwhelming demand on Texas' independent power grid.
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