Texas Governor Greg Abbott has issued a moratorium on all new data center construction in the Lone Star State as of August 4, 2026. The freeze requires a "comprehensive verification and audit" of all new data center projects seeking to connect to Texas' power grid, which is overseen by the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission (PUC).

Abbott's letter to PUC Chairman Thomas Gleeson and ERCOT President and CEO Pablo Vegas emphasizes that ERCOT is currently considering approximately 474 gigawatts of requests to connect to the Texas grid, with about 90 percent of these requests associated with data centers. This demand is more than five times Texas' record peak electricity demand for ERCOT, raising concerns that such unprecedented load growth could jeopardize the reliability and stability of the state's electric grid.

The new order mandates that prospective data centers provide detailed information about their proposed water use, tax breaks received, cooling technologies employed, and project ownership. Any project failing to comply must be denied connection to the Texas grid.

To qualify for grid connection, applicants must pay a deposit to cover grid upgrade costs and demonstrate they have a contracted customer, a signed lease agreement or deed for the land, and orders for necessary equipment, among other requirements. This framework aims to filter serious applicants from non-serious ones, potentially reducing the overwhelming volume of requests.

Public opposition to data center construction is significant. A June 2026 poll by the University of Texas/Texas Politics Project found that 56 percent of Texas voters opposed data center projects in their communities. Nationally, a Heatmap Pro poll indicates about 70 percent of Americans share this opposition, suggesting ongoing conflicts over data center expansion.

Governor Abbott, who previously called Texas the "epicenter" of artificial intelligence development while courting megaprojects, has shifted stance amid these concerns. The freeze in Texas, a major energy market, may influence other states to adopt similar measures.

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