Texas halts new data centers as governor calls for audits
Tech companies and developers have been scouring the U.S. for places to build data centers, and they’ve been drawn to Texas’ loose regulations and seemingly abundant power supply. But even Texas can be pushed to the brink.
Texas has halted approval of new data center projects and will require audits by state regulators before they can proceed. This matters because data centers consume massive amounts of electricity and water, and the state's grid operator is tracking 474 gigawatts of new connection requests, with about 90 percent coming from data centers, which exceeds five times the state's total peak demand. Texas attracted data center developers due to its loose regulations, abundant power supply, and low electricity prices, but the rapid influx of projects has raised concerns about grid capacity and rising electricity costs. The governor's move represents a significant shift from Texas's traditionally business-friendly regulatory approach and signals that even states welcoming data center development may need to impose limits to protect their infrastructure.
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