Texas freezes data center grid connections amid surging AI demand

Texas authorities have frozen new data center connections to the ERCOT power grid following a massive surge in interconnection requests. Governor Greg Abbott ordered an audit of approximately 300 projects exceeding 75 megawatts to investigate demand reality, water usage, cooling methods, and community impacts.

Total interconnection requests have reached approximately 474 gigawatts, nearly five times the historic peak demand of 91 gigawatts recorded in July 2026. Approximately 90% of these requests are linked to hyperscale data centers and artificial intelligence workloads. This represents a significant increase from late 2025, when requests stood at 233 gigawatts.

While battery storage capacity has expanded rapidly to help manage peak loads, the sheer volume of pending requests has prompted regulators to take action against potential speculation regarding connection rights. A formal report on the audit is expected by December 10, 2026.