As of August 3, 2026, Texas Governor Greg Abbott, R, implemented a pause on Texas data center grid connections, which, according to Bloomberg NEF, put almost 20% of the total US data center pipeline worth about 49.8 GW at risk of delay. [1] Abbott called for an audit of all data centers in the Electric Reliability Council of Texas (ERCOT), leading the grid operator to delay its review to the first set of projects to navigate the state’s new large load interconnection process. [2] As a result, data center revenue losses could reach up to $8 billion by the first quarter of 2027 assuming that 60% of delayed capacity is AI-related. [3] Governor Abbott stated that the total ERCOT interconnection queue requests are worth 474 GW and 90% of new power requests are data centers. The audit will examine if data centers are providing their own power or relying on the grid; their use of water; and which data centers are utilizing state or federal assistance such as tax incentives, grants or abatements. The Texas moratorium follows that of New York, which halted new data center approvals for up to one year.
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