Texas halts data center connections to power grid amid overwhelming demand

Ars Technica reports that Texas Governor Greg Abbott has announced a moratorium on new data center power grid connections, as overwhelming demand for power strains the state's resources. Abbott, who recently declared Texas the epicenter of AI development, on Tuesday paused new power hookups until developers provide more details about how their projects might impact the grid and communities. The directive requires a comprehensive audit of all data centers in the interconnection process. Texas had aggressively pursued data center development with tax breaks, fewer regulations, and abundant energy, and the state is on track to surpass Virginia as the nation's largest data center market. But surging power demand has now prompted this reversal.

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