Texas is moving to a more measured phase in its data center boom. Governor Greg Abbott has ordered that all new projects be reviewed by both the Public Utility Commission of Texas and ERCOT, the state's grid operator.
The decision comes as demand for grid connections has surged. ERCOT's interconnection queue has expanded rapidly this year, reaching 474 gigawatts of requested capacity, with roughly 90% tied to data centers. In January, the queue stood at 233 gigawatts.
Many of these proposals are still early-stage plans, but the scale has raised concerns about how much new load the grid can absorb. Even so, Texas remains a major destination for digital infrastructure thanks to its energy resources and relatively affordable electricity.
The state has also seen strong growth in renewable power. According to the U.S. Energy Information Administration, utility-scale solar capacity has multiplied several times since 2021, helping support rising demand. At the same time, electricity prices have edged upward as data centers and crypto mining facilities expand.
Abbott's directive asks regulators to gather detailed information on proposed projects, including electricity and water needs, noise controls, lighting practices, tax incentives, and ownership structures. The move follows a voluntary survey that drew limited participation.
Texas is now signaling a shift from open-ended expansion toward closer planning, a change that could shape how large-scale digital infrastructure is built in the years ahead.
