Texas, long a haven for tech companies due to its regulatory leniency and cheap power, is facing a surge in demand that could test the state’s infrastructure. Governor Greg Abbott has ordered audits of all new data center projects, aiming to prevent overloading ERCOT's electrical network.

The interconnection queue has grown dramatically, with 474 gigawatts of proposed projects, mostly data centers, waiting to connect. While utilities have managed to keep pace with growing demand through renewable energy and tax incentives, Abbott’s move signals a shift towards more oversight.

Even as electricity prices in Texas remain relatively low by US standards, they are rising due to the increased load from tech companies and crypto-miners. Abbott's directive aims to ensure that data centers operate responsibly while preventing potential grid collapse.