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Texas halts data center connections to power grid amid overwhelming demand

Governor who touted Texas as AI “epicenter” pauses data center grid connections.

Texas halts data center connections to power grid amid overwhelming demand

TL;DR

  • Texas Governor Greg Abbott has placed a moratorium on new power grid connections for data centers.
  • The decision stems from concerns that the rapid growth of data centers, driven by AI development, could destabilize the Texas electric grid.
  • The Electric Reliability Council of Texas (ERCOT) interconnection queue includes over 1,800 projects representing more than 474 gigawatts, with 90% from data centers.
  • Abbott's directive requires comprehensive audits of data center projects, focusing on power dependence, electricity consumption, and financial assistance.
  • The order also mandates investigation into water usage for cooling systems and potential impacts on local water supplies.
  • The directive does not explicitly address air pollution or greenhouse gas emissions from data centers, and some projects are bypassing the moratorium using 'behind-the-meter' power generation.
  • The pause comes amid rising public opposition to data centers in communities and political pressure on Governor Abbott.