Texas Governor Greg Abbott ordered a pause on new data center connections to the state’s power grid, freezing approvals at the Public Utility Commission of Texas (PUCT) and grid operator ERCOT while both audit the backlog of projects awaiting interconnection. The moratorium, announced this week, is the state’s most aggressive response yet to an AI buildout that has outpaced the infrastructure supporting it.
The numbers explain the decision. ERCOT’s interconnection queue holds more than 1,800 projects representing over 474 gigawatts of requested capacity (more than five times the grid’s all-time peak demand record), and roughly 90 percent of that new load is data centers, Abbott said. ERCOT’s long-range forecasts through 2030 already treat data centers as the dominant factor in load planning.
The pause follows a disclosure exercise that drew few responses. The PUCT asked 377 companies to supply information on electricity usage, water draw, cooling systems, tax incentives received, facility ownership, and benefits to surrounding communities. Only 28 responded. Abbott said projects that fail to comply with the requirements of the PUCT, ERCOT, and state law should be denied grid connection entirely.
The moratorium has clear limits. Projects outside ERCOT’s jurisdiction, such as those in El Paso, are unaffected, as are facilities that bring their own power generation. Some developers are already signaling they will route around the queue entirely by building behind-the-meter power plants, which would let them plug in without waiting for ERCOT’s review.
Texas is not alone in hitting the brakes. New York imposed a one-year moratorium on certain data center approvals in July, and several Texas cities and counties had already passed restrictions of their own. The open question is whether the audit produces a durable framework covering power, water, and community impact, or merely a speed bump before approvals quietly resume. Either way, the queue is not getting shorter.
Sources: Texas pauses data center approvals (AP News, Aug 4, 2026); Texas governor orders pause on new data center approvals pending audit (Reuters, Aug 4, 2026); Abbott issues Texas data center moratorium amid water, grid concerns (El Paso Times / USA Today, Aug 3, 2026)