Texas data center ERCOT grid moratorium
- Texas Governor Greg Abbott on August 7 imposed a moratorium on new ERCOT grid connections for data centers and directed the Public Utility Commission of Texas and ERCOT to conduct a 'comprehensive verification and audit' of all data centers in the interconnection process.
- Developers must supply more information about grid and community impacts before connections are approved.
- Texas had been aggressively courting data center investment through cheap land, tax breaks, and lighter regulation, and was on track to displace Virginia as the largest US data center market.
The 49.8 GW under review represents nearly 20% of the US data center pipeline, and BNEF puts revenue exposure as high as $15 billion depending on how AI-designated capacity is classified. ERCOT's acknowledged difficulty in separating AI from non-AI loads adds uncertainty to the audit's scope and timeline.