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Texas Halts Data Center Connections To Power Grid Amid Overwhelming Demand (arstechnica.com) 76

An anonymous reader quotes a report from Ars Technica: Nowhere is the US data center boom bigger than in Texas. But less than a year after declaring Texas the "epicenter of AI development," Governor Greg Abbott has declared a moratorium on all new power grid connections for data centers -- at least until developers provide more information about their projects' potential impacts on the grid and communities. The Republican governor directed regulators in an August 3 announcement at the Public Utility Commission of Texas and the grid operators at the Electric Reliability Council of Texas (ERCOT) to perform a "comprehensive verification and audit of all data centers advancing through ERCOT's interconnection process." As an independent system operator, ERCOT oversees a power grid that operates separately from the rest of the United States and provides services to most of Texas.

Texas has aggressively courted data center development with its availability of cheap land and relatively abundant energy resources, along with offering state incentives, like tax breaks and fewer regulations. That puts the state on track to surpass Virginia in becoming the largest US data center market. But the recent AI boom and the accompanying frenzy of data center development threaten to overwhelm the Texas grid on paper, despite the state leading the country in adding new power generation. The ERCOT interconnection queue currently includes more than 1,800 projects representing over 474 gigawatts' worth of requests to connect to the Texas grid -- more than five times Texas' record peak electricity demand -- and about 90 percent of those power connection requests come from data centers.

"That unprecedented load growth could endanger the reliability and stability of the Texas electric grid," according to the statement from Abbott's office. Many of those data center projects may never materialize for various reasons. But ERCOT has still forecast that data center demand and other factors could drive statewide electricity demand to double the current demand record by 2032, according to The Texas Tribune.
The review will examine each project's projected electricity consumption, reliance on the grid and state incentives, ownership, and water use. It will also assess measures intended to "reduce impacts on neighboring property owners and communities," including noise controls, lighting, traffic improvements, setbacks, and emergency planning.

Ars Technica notes that the directive does not address air pollution or greenhouse-gas emissions and does not apply to data centers generating their own power on-site.

Texas Halts Data Center Connections To Power Grid Amid Overwhelming Demand

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  • Grift central (Score:2, Insightful)

    by Anonymous Coward

    The ERCOT interconnection queue currently includes more than 1,800 projects representing over 474 gigawatts' worth of requests to connect to the Texas grid -- more than five times Texas' record peak electricity demand -- and about 90 percent of those power connection requests come from data centers.

    1,800 local politicians saw dollar signs and signed tax incentives for luscious kickbacks. Most of them didn't realize the other grifters around the state were also making back room deals. Now all the data centers want cheap power, tax breaks, and cooling water that Texas just doesn't have.

    • The ERCOT interconnection queue currently includes more than 1,800 projects representing over 474 gigawatts' worth of requests to connect to the Texas grid -- more than five times Texas' record peak electricity demand -- and about 90 percent of those power connection requests come from data centers.

      1,800 local politicians saw dollar signs and signed tax incentives for luscious kickbacks. Most of them didn't realize the other grifters around the state were also making back room deals. Now all the data centers want cheap power, tax breaks, and cooling water that Texas just doesn't have.

      Yous have to stop taking such a short view.
      1. Datacenter demands x KWhs of electricity. Utility caves because it's just demand, like more people moving to Texas, and that's a BIG Tax Plus.
      2. Datacenter gets KWhs/per$ contract with Utility, possibly underwritten by Gov./taxpayers, possibly unstated cost.
      3. Datacenter demand collapses, entire grift explodes leaving only two or three players. People move on, just happy they can get DDR5 again.
      4. Datacenter still has contract with Utility but no demand. "Of

  • What?!?!? (Score:5, Funny)

    by Black Parrot ( 19622 ) on Wednesday August 05, 2026 @12:03AM (#66273410)

    Surely they're not going to cut off the data centers just so ordinary people can have electricity?

    • Re:What?!?!? (Score:5, Insightful)

      by anoncoward69 ( 6496862 ) on Wednesday August 05, 2026 @12:25AM (#66273416)
      Nope, They're just going to encourage them to run dozens of poorly maintained rental black soot belching diesel generators on trailers in the data center parking lots contributing to the noise pollution and smog in texas. Better hope you don't live within a few miles of one of these things.
      • by Required Snark ( 1702878 ) on Wednesday August 05, 2026 @12:42AM (#66273428)
        There's so much excess bullshit in Texas they could dry it and burn it to power data centers.

        It's part of the bullshit-in/bullshit-out AI bubble.

        • There's so much excess bullshit in American that many World Cup fans visiting from away wish they could stay. Forever.

        • Re:What?!?!? (Score:5, Interesting)

          by Grimolfr ( 9749826 ) on Wednesday August 05, 2026 @10:34AM (#66273772)

          There's so much excess bullshit in Texas they could dry it and burn it to power data centers.

          It's part of the bullshit-in/bullshit-out AI bubble.

          12 million head of cattle, averaging 100 lbs of manure per day per cow, is around 219 million tons of manure a year. 1 ton burned is around 45 KWh of power. So that's 9.8 GWh of power per year. A single datacenter depending on the build needs anywhere from 87 GWh to 8.76 TWh annually. So not remotely close to enough bullshit to handle it. The 110 TWh of wind and 65 TWh of solar power produced annually in TX (the highest renewable energy production of any US State) does make for a great start though, and especially in West Texas where they are LOTS of places to build it with no one around to care other than those 12 million cow and associated cowboys.

          • averaging 100 lbs of manure per day per cow

            Really? I never knew a cow can shit 100lbs per day. My family used to own a dozen cows, I'm quite sure the whole group shit about 30lbs a day.

            • However much they shit you still need to account for water loss

            • Really? I never knew a cow can shit 100lbs per day. My family used to own a dozen cows, I'm quite sure the whole group shit about 30lbs a day.

              Are you sure that you had cows and not a bunch of small goats or something? Because a dozen small goats would produce 30lbs a day of poop.
              The GP is very much right. Depending on breed, size, and feed, and purpose a typical cow shits out 60-150lbs a day. Cows reared for beef are on the lower end. Cows reared for dairy are on the higher end. Even heifers can shit out about 50lbs of manure a day.

              https://thedairylandinitiative... [wisc.edu]
              https://www.eesi.org/papers/vi... [eesi.org]
              https://dairyone.com/services/... [dairyone.com]

    • by Anonymous Coward

      Capitalism & Freedom

      No !
      not like that !

    • by ShanghaiBill ( 739463 ) on Wednesday August 05, 2026 @03:09AM (#66273510)

      Texas has plenty of wind and sunshine.

      They should be installing wind turbines in the Panhandle and solar panels in the Trans-Pecos region.

      Someone should explain supply and demand to Governor Abbott.

      • by gtall ( 79522 ) on Wednesday August 05, 2026 @04:21AM (#66273554)

        "Someone should explain supply and demand to Governor Abbott." In his mind, energy = burning hydrocarbons. If Texas had lots of coal, they'd happily burn that. They do not give a flying rat's ass about the planet. And there's sizeable contingent of Christian Nutjobs down there that figure if we screw up the Earth badly enough, then Jesus will return. It's all in the Bible, along with all their science.

      • Texas has plenty of wind and sunshine.

        They should be installing wind turbines in the Panhandle and solar panels in the Trans-Pecos region.

        Someone should explain supply and demand to Governor Abbott.

        Texas is also a loser. At least according to his orangeness [independent.co.uk].

        Alongside this "audit" of data centers, Texas is planning to build one next to a Buddhist monastery [independent.co.uk]. I'm sure if I decided to build a data center next to church it would be denied even before I got my last word out of my mouth.

      • Texas IS installing solar and wind, faster than any other state in fact.

        But unlike China which virtue signals about the alt power they are building, Texas lack-of-virtue signals by crowing about coal and oil while building... the same alt power.

        Chinese are more forward-looking than Texans.

        • But unlike China which virtue signals about the alt power they are building

          China is the country that lead the charts in reducing carbon intensity per kWh generated in 2025. In fact one of the few countries where carbon intensity per kWh increased last year was the good ol' USofA. China's green energy growth far exceeded their energy growth last year (as it has the past 4 years).

          Educate yourself https://www.energyinst.org/sta... [energyinst.org]

          • Educate yourself as to what words and phrases in English mean before you try to correct me.

            • Educate yourself as to what words and phrases in English mean before you try to correct me.

              Ok I'll do so:

              Virtue signaling: a critical term for when people or groups talk about good moral values just to make themselves look good to others.

              So literally by definition doing something that has a material positive effect is not simple virtue signalling.

              Oh okay I think you're the one here that got an education. But it's okay, I'm not American so this education was free. You're welcome.

      • They are. Texas has installed more renewables than anywhere else in the world in the past few years, but it isn't going to allow them to meet a 5x electricity demand.

        • Texas has installed more renewables than anywhere else in the world in the past few years

          [citation needed]

          For Texas, I'm finding 2024 numbers from the Texas Economic Development Corp. here [businessintexas.com] and it touts adding 9,700 MW of solar in 2024. Meanwhile, China installed 277,000 MW of solar in 2024. I'm not readily finding numbers for wind, but I don't really need to -- you're the one making the outlandish claim, you need to provide the data.

      • by Glith ( 7368 )

        Texas has the most wind turbines in the United States by a massive margin. The state features roughly 19,600 active wind turbines, which is more than the next three states combined, and accounts for over a quarter of all U.S. wind energy generation.

      • Texas has plenty of wind and sunshine.

        They should be installing wind turbines in the Panhandle and solar panels in the Trans-Pecos region.

        Someone should explain supply and demand to Governor Abbott.

        110 TWh of wind and 65 TWh of solar power produced annually in TX (the highest renewable energy production of any US State). Believe they already understand. They are energy companies, they don't care how the energy is produced whether it be oil wells, solar panels, or wind turbines, as long as they can make a profit on it. Though they still need the oil wells, as solar panels require oil to make, so do wind turbines not to mention the massive amount of lubricating oil/grease they use.

      • Someone should explain supply and demand to Governor Abbott.

        Potential power generation does not mean solar and wind farms magically appear overnight. Infrastructure like transmission lines also do not appear out of nowhere. You're also talking about deep red Texas which cares little about regulation. The problem is not Abbott is against any data centers forever. The problem is even in Texas, the infrastructure is struggling to cope right now.

        • Potential power generation does not mean solar and wind farms magically appear overnight. Infrastructure like transmission lines also do not appear out of nowhere. You're also talking about deep red Texas which cares little about regulation. The problem is not Abbott is against any data centers forever. The problem is even in Texas, the infrastructure is struggling to cope right now.

          Exactly. Texas is insisting that the requestors of these new power interconnects provide details forecasts on realistic/actual planned demand. No doubt a lot of these datacenter projects are just asking for xGW interconnects so they can advertise they have xGW to presell to finance their builds. The end effect of this pause it to filter out the noise and match requirements from viable projects to available capacity. It's called planning, and while ERCOT is not known for doing that very well, this might actually be a sign they are getting better at that. All the while putting spin on it that satisfies the DC opponents in the polls. Smart really.

    • If there's regular power outages, no amount of campaign contributions are going to persuade angry voters to vote them back into office at the next election.

  • by rsilvergun ( 571051 ) on Wednesday August 05, 2026 @12:29AM (#66273420)
    The Republicans are deeply deeply underwater for the midterms and as much as they will cheat using common county level voter suppression tactics there are limits to what they can get away with even in deep red Texas.

    So short-term they're going to back off at least until after the midterms because America is still nominally a democracy.

    If we get another term of the Republicans in the white house though I don't think it's going to matter anymore and you're going to find out what it's like to have one party rule. They're not going to give a fucking rat's ass whether you have electricity and water..
    • Don't worry Donny will look after you too: https://www.newsweek.com/trump... [newsweek.com]
    • Re: (Score:1, Troll)

      by linuxguy ( 98493 )

      It is surprising to me that a minority party has gained so much power in politics that it can blatantly and shamelessly screw over voters and then give a middle finger to anyone who complains.

    • by Smonster ( 2884001 ) on Wednesday August 05, 2026 @10:36AM (#66273778)
      The Texas voters are not nearly as deep red as their government. The republicans have a simple majority at best. Maybe 55/45, or even 57/43. What they do have is severely gerrymandered districts that prevent the democrats from have any proportional federal representation. And a winner take all state government that can pass most legislation with a simple majority so they can completely ignore the democrats.

      Like the rest of the country, the democrat run areas supply most of the wealthy generated in the state. Also like the rest of the country right now, the socialist republicans take the money produced by the democrats and then spend it in republican controlled areas and otherwise ways the people who generated the money largely do not approve. Taxation without representation, if you were.

      My birth state of Utah is much the same. It is one of the reasons I moved. First to a state almost completely controlled by democrats, then to a purple one. I like it better here in a battle ground state. People actually have to work together and compromise to get things done. There is also a lot less corruption; or at least they don't seem to flaunt it. I am sure the people running Utah don't mind that I left. Though the people who bought my house are unlikely to vote any differently than I did.
  • by ahoffer0 ( 1372847 ) on Wednesday August 05, 2026 @01:28AM (#66273464)

    Especially the mistakes.

  • This time it's GOP politicians worried about loosing re-election in the midterms. Despite a Mighty Wind of speechifying, faux news support, and Epstein class PAC contributions. Even MAGA's get pissed off when their electric rates sky rocket and their house goes hot and dark.
  • --from an ex-Texan.
  • With briefcases of cash to change Abbots mind

They are relatively good but absolutely terrible. -- Alan Kay, commenting on Apollos

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