Texas has paused the approval of new data center projects due to grid capacity constraints and speculative requests, according to information from a16z. The Electric Reliability Council of Texas (ERCOT) reported that large-load interconnection requests are expected to reach 474.7 GW by June 2026, primarily driven by data center demand. The state is tightening its interconnection study and approval procedures to ensure only viable projects proceed, reflecting the gap between proposed and committed loads. Observers will monitor whether Texas enacts a formal moratorium on data center construction or interconnection by December 31, 2026, with key indicators including actions from the Texas Legislature, Governor Greg Abbott, and the Public Utility Commission of Texas.
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