Texas Gov. Greg Abbott has halted new data-center grid connections while state regulators conduct an audit of projects waiting in the queue.
USA TODAY reported that the pause is intended to address concerns about electricity demand, grid reliability and water use as large computing facilities expand across the state. Data centers require substantial power for servers and cooling systems, and construction can affect local utility planning.
The order focuses on proposed connections awaiting review. It does not automatically shut down existing facilities or cancel every project already approved. Regulators are expected to examine generation capacity, transmission infrastructure and water resources.
The decision puts Texas economic development alongside questions about who pays for new infrastructure and how quickly utilities can add capacity. The audit could influence the timing and cost of projects in North, Central and South Texas.
Source: USA TODAY, Aug. 3, 2026.
