Texas Governor Greg Abbott paused new data center development and blocked data center connections to the state's power grid on August 4, 2026, according to TechCrunch and Ars Technica. The halt will remain in place until audits of data center activity in Texas are completed.
Ars Technica reported that the action was prompted by overwhelming demand on the power grid. Abbott had previously described Texas as an AI "epicenter" and promoted the state as a hub for the artificial intelligence industry, the outlet said.
TechCrunch reported that Abbott called for the audits alongside the development pause.