Texas has temporarily halted the approval of new data center projects. The decision stems from concerns regarding grid capacity and a surge in speculative interconnection requests. According to data from the Electric Reliability Council of Texas, the total volume of large-load interconnection requests reached 474.7 GW by June 2026, with data centers accounting for the majority of this demand.
State authorities are currently revising interconnection study and approval protocols to prioritize viable projects. While the pause is in effect, officials are working on plans to resume the interconnection of credible developments and improve overall grid infrastructure. The state aims to address the significant disparity between proposed and committed power loads.
Market observers are monitoring the situation for a potential formal moratorium on data center construction or grid interconnection, which could be implemented by December 31, 2026. Key developments to watch include legislative actions from the Texas Legislature, executive orders from Governor Greg Abbott, and regulatory decisions from the Public Utility Commission of Texas and ERCOT.
