Texas Governor Greg Abbott has implemented measures to slow the construction of data centers within the state. These initiatives include a moratorium on new grid connections and a series of mandatory audits.

The audits are currently being conducted by the Texas Commission on Environmental Quality, ERCOT, and other relevant state agencies. These regulatory actions are forcing developers to reconsider their project locations.

As a result of these policies, developers are increasingly looking at alternative states for their infrastructure projects, including Iowa, Utah, and Georgia. This shift threatens Texas's goal of challenging Virginia's leading position in the data center market.