Texas Pauses 1,800 Data Center Grid Connections as Power Queue Hits 474 GW

Texas Governor Greg Abbott has ordered utility regulators to pause new data center connections to the state's electric grid, freezing roughly 1,800 proposed projects. The order, issued Aug. 4, directs the Public Utility Commission of Texas and ERCOT to review each project's power needs, water use, and ownership before granting grid access.

The pause comes as ERCOT's interconnection queue holds more than 474 gigawatts in requests, with data centers accounting for over 90 percent of that load. Texas already hosts 521 data centers, the second-most in the country behind Virginia, according to third-party statistics cited by the governor's office.

474 GW in the Queue, Most From Data Centers

Abbott's office said the "unprecedented load growth could endanger the reliability and stability of the Texas electric grid." In response, the governor ordered PUCT and ERCOT to collect detailed information from any proposed data center seeking grid connection. That information includes ownership and finances, planned power needs, water use, cooling plans, and steps to minimize negative impacts on residents.

Projects missing the required information will not be allowed onto the grid, according to TechSpot's report on the directive. The order applies to both new data centers and expansions seeking interconnection. Applicants must also disclose any tax breaks or incentives they have received or requested.

• More than 500 data centers already operate in Texas.
• ERCOT is reviewing 474 GW in interconnection requests, mostly from data centers.
• About 1,800 projects are now affected by the pause.
• Applicants must provide tax break details, power generation data, and water usage plans.
• The order follows similar restrictions at federal, state, and city levels.

Fallout for the AI Buildout

The pause marks a sharp reversal for Abbott, who previously touted Texas as an "AI epicenter" and welcomed data center investment. Now the governor is responding to mounting local backlash over resource use and grid strain, a sentiment that has spread from rural counties to state capitals.

What comes next is unclear. The audit could produce new permitting rules or caps on data center demand, and ERCOT may prioritize projects that generate their own power. Data center developers with projects already underway face delays while regulators review their filings. The review process has no published deadline, leaving the 1,800 proposed projects in limbo as Texas works out how much of its grid it is willing to give to AI.