Texas Governor Greg Abbott has imposed a moratorium on new grid connections and requested audits from the Texas Commission on Environmental Quality, ERCOT, and other agencies to slow data center construction in the state. These measures are pushing developers to consider alternative locations such as Iowa, Utah, and Georgia, risking Texas’s ambitions to rival Virginia’s dominance in the data center market. Market pricing suggests an increased likelihood of a formal data center construction moratorium in Texas by the end of 2026, with the odds of a moratorium by December 31, 2028 rising from 30% to 38%. This shift in Texas data center policy is tangibly redirecting projects to other states. Observers are watching for further announcements from the governor, legislative actions, audit results, and potential executive orders.
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