On an unspecified date in 2026, Texas Governor Greg Abbott announced a pause on new data‑center connections to the state’s power grid, citing an "overwhelming" demand that could compromise reliability.
The pause applies to all pending data‑center approvals, which the governor said will remain on hold until comprehensive audits are completed, according to the Associated Press. Ars Technica reported that Abbott, who has touted Texas as an AI epicenter, made the decision amid growing concerns that the grid cannot keep pace with the rapid expansion of data‑center infrastructure.
Texas has become a key destination for cloud and AI providers, and the grid’s limited capacity has raised questions about balancing economic growth with energy stability.