Even as FERC accelerates grid interconnection queue processing, physical construction of transmission and distribution upgrades remains the persistent bottleneck.

Governor Abbott announced a pause on data center approvals this week, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct audits on all data centers in ERCOT's interconnection queue—the line for energy-intensive projects seeking connection to the electric grid. ERCOT is currently tracking more than 1,800 projects in the queue, representing over 474 gigawatts of electricity, more than five times the grid's record for peak demand. Approximately 90% of the new power requests are data centers, according to Abbott.

The timeline for the audit remains uncertain, though the order represents Abbott's strongest effort to date to slow data center development statewide. The action underscores how limited public information—including among state leaders—remains about these facilities.

The pause follows the finalization of ERCOT's batch zero process, designed to streamline large load connections, primarily from data centers. That process has since been delayed.

The financial implications of the pause may be more severe than initially expected. Analysis from Bloomberg NEF estimates that delays in energization could put billions of dollars of data center leasing revenue at risk. According to BNEF, AI computing capacity can generate approximately $1.76 billion per gigawatt per month. "The implied revenue at risk for data centers runs into many billions of dollars if interconnection policy changes in the next term," the firm stated. The pause affects roughly 20% of the U.S. data center pipeline.