Texas Pauses 474GW of Planned Data Center Grid Connections
Large Texas data center developers and energy infrastructure investors must act because the governor’s pause blocks new grid interconnection approvals for 474GW of planned capacity, delaying project timelines and requiring revised compliance and permitting strategies.
Texas Governor Greg Abbott directed the state Public Utility Commission of Texas (PUCT) to pause approvals for new grid connections to large data centers, impacting 474GW of planned data center capacity in the state, one of the largest U.S. data center markets. The pause introduces new oversight requirements for interconnection requests, including proof of sufficient on-site power backup and alignment with state grid reliability goals. Project developers, utility stakeholders, and data center and energy infrastructure investors should monitor upcoming PUCT rulemaking, adjust project timelines for extended review periods, and prepare documentation demonstrating grid resilience compliance to support future applications.