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Greg Abbott Imposes Moratorium on New Data Center Grid Connections in Texas

Governor Greg Abbott has declared a moratorium on all new data center power grid connections in Texas to ensure the state's electrical infrastructure can support the rapid expansion of AI development. The administration announced that the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT) must conduct a comprehensive audit of all projects currently in the interconnection queue. This move follows a period of intense growth where the interconnection queue reached over 474 gigawatts of requests, representing more than five times the state's record peak demand. The administration announced that projects failing to comply with the audit process will be denied. The audit will evaluate factors such as electricity and water usage, noise mitigation, and tax incentives. While the moratorium may delay the 'Batch Zero' review process, industry leaders suggest it will help distinguish serious investors from speculative projects. The administration announced that this pause allows regulators to establish clear standards to protect the reliability and stability of the Texas electric grid.

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