Texas has halted new data center construction as Governor Greg Abbott calls for audits, citing concerns about the state's power grid capacity. The move signals growing tension between the booming data center industry and infrastructure limitations in a state that has been a major destination for tech expansion.
Background
Texas has become a hotspot for data center development due to its favorable regulatory environment and relatively low energy costs, attracting major tech companies. However, the state's power grid, managed by ERCOT, has faced strain from rapid demand growth.
- Source
- TechCrunch
- Published
- Aug 4, 2026 at 11:42 PM
- Score
- 6.0 / 10