Texas halts data center connections to power grid amid overwhelming demand
Governor who touted Texas as AI “epicenter” pauses data center grid connections.
Texas has halted connections between data centers and its power grid due to overwhelming demand. This decision comes less than a year after Governor Greg Abbott declared Texas the "epicenter of AI development." The moratorium, announced on August 3 by the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT), requires developers to provide more information about their projects' potential impacts on the grid and surrounding communities.
ERCOT, as an independent system operator, manages a power grid separate from the rest of the United States, serving most of Texas. The state has actively encouraged data center development through cheap land availability, abundant energy resources, and incentives like tax breaks and fewer regulations. Texas is on track to become the largest U.S. data center market, surpassing Virginia.
Written by urgent.news from Ars Technica's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
