Texas suspends power hookups for new AI data centers over grid reliability concerns as Gov. Greg Abbott calls for stricter state audits.

Texas Governor Greg Abbott has directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of every data center advancing through the state’s interconnection queue, warning that projects that fail to disclose ownership, financial, water, and community-impact information could be denied grid access.

A final order in the case could offer a template for other large behind-the-meter loads, requiring rapid curtailment during grid emergencies while limiting participation in demand response programs.

Expects to energize up to 8GW of data center load in the Greater Houston area by 2029

Here's the update quoting from their earnings call yesterday: "we and our IPP Partner put together what we view as a very unique bridge-to-grid solution on our 30,000-acre Bryant Ranch location, ultimately to deliver scalable, reliable power near Midland, Texas. We have secured distributed power generation, remediated land, and directed access to dedicated nat gas and water supply. All of this should allow us to provide a shovel-ready development project delivering first gas as soon as the back half of 2027 through the use of behind-the-meter recip units... we'll give the market a larger update once we've signed definitive documentation with a hyperscaler, but are confident in the direction that this project is going."

Nexus Data Centers will use that funding to build out a large infrastructure campus in Texas for Anthropic, according to a source.