Texas Halts New Data Center Grid Connections

Texas announced a temporary moratorium on new data center power grid connections, marking a reversal after months of aggressive efforts to attract such infrastructure. Governor Greg Abbott directed state regulators to conduct comprehensive audits of all data center projects undergoing interconnection, citing concerns about potential impacts on grid stability and local communities. The measure affects a rapidly growing market fueled by the state's relatively cheap energy, available land, and incentives including tax breaks and lighter regulation—factors that had positioned Texas to surpass Virginia as America's largest data center market.