Governor Greg Abbott ordered a halt on new data center grid connections until a comprehensive state audit is completed.

The Public Utility Commission of Texas and ERCOT will verify all data center projects currently in the connection queue.

Officials cite concerns that surging demand from AI and cloud computing could destabilize the state power grid.

Data centers represent approximately 90% of the 474 gigawatts in new power requests.

This total volume is more than five times the current record peak demand for the state.

The audits will specifically scrutinize power consumption, water usage, and tax incentives for each project.