Texas, the country’s fastest-growing hub for artificial intelligence infrastructure, just hit the brakes. Governor Greg Abbott ordered a sweeping halt on new data center projects, requiring every proposal to pass through fresh Texas data center audits before it can connect to the state’s power grid. The move, announced Monday, signals that even the most business-friendly energy market in the country has reached a point where growth needs a closer look.
Key takeaways
Governor Greg Abbott has ordered the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all new data center proposals before grid connection.
ERCOT’s interconnection queue jumped from 233 gigawatts in January to 474 gigawatts by mid-year, with about 90% of that demand coming from data centers.
The queue now represents more than five times ERCOT’s total peak electricity demand, raising concerns about grid overload.
Data centers and crypto-mining oper
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