Governor Greg Abbott ordered the state's Public Utility Commission to audit data centers before granting new grid connections, a reversal for a state known for loose AI infrastructure rules.
Texas has stopped approving new data center connections to its power grid until facilities pass an audit, Governor Greg Abbott announced. The move targets a state that had become a magnet for AI infrastructure builders drawn to cheap power and minimal regulation.
The audit requirement, directed at the Public Utility Commission of Texas, could delay a wave of planned facilities and signals growing concern that data center power demand is straining the grid faster than it can be planned for.
Even the most developer-friendly state in the country is now rationing grid access for AI infrastructure, which raises the real risk of site-selection delays for any company mid-build in Texas. Expect other states to watch this audit model closely as a template for managing AI's power footprint.
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