Texas Freezes Hundreds of Data Centre Projects Amid Power Grid Strain
Texas has imposed a moratorium on new data centre connections to the power grid, freezing hundreds of projects as ERCOT reviews capacity constraints driven by AI demand.
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Hundreds of data centre projects in Texas are frozen after the state blocked new connections to the power grid.
The Electric Reliability Council of Texas expects to finish reviewing about 450 large and medium data centre projects by December. The pause comes as AI-driven demand for electricity strains existing capacity.
A leaked Republican memo indicated concern that voter backlash over data centres and power costs could affect electoral outcomes in other states.
Data centres require substantial and reliable power. The rapid expansion linked to artificial intelligence training and inference has outpaced grid upgrades in several regions, with Texas among the most affected due to its concentration of facilities.
Operators and developers are assessing alternative sites or delayed timelines while the review continues. The situation illustrates the infrastructure bottleneck facing the AI build-out.
