Texas Governor Greg Abbott has ordered a halt to new data center connections to the state's power grid due to overwhelming demand. The directive also mandates increased scrutiny of data centers' impacts on local communities, including noise and traffic. However, it notably omits concerns about air pollution and greenhouse gas emissions.

AI companies have reportedly exploited permit loopholes in Texas to install on-site gas-powered turbines and diesel generators, bypassing extensive environmental reviews. Crucially, the pause does not affect data centers building their own power generation, a strategy increasingly adopted by tech giants like Meta, Microsoft, and Amazon. This "behind-the-meter power" often relies on natural gas, with developers turning to alternatives like truck-mounted generators and aircraft turbines due to turbine backlogs.

Texas leads the nation with 40 gigawatts of announced behind-the-meter capacity, attributed to its gas supply, infrastructure, and regulatory environment. This moratorium significantly disrupts the Electric Reliability Council of Texas's (ERCOT) plans, including the postponement of its "Batch Zero" process for connecting early data center projects.