Texas puts a brake on its data centre boom (www.ft.com)

Texas has paused approvals for new data centres amid growing public resistance to its rapid AI development and infrastructure expansion. Governor Greg Abbott announced an audit to assess the suitability of these centres for connection to the power grid, triggering confusion and concern among developers. Once regarded as a booming hub for tech investment, Texas's data centre market is facing challenges, as rising opposition from rural voters, who feel burdened by the infrastructure demands, complicates the political landscape ahead of midterm elections. This shift marks a significant turn in Texas's reputation as a go-to destination for AI and data centre projects, with notable investments such as Oracle's massive Stargate project and Meta's $12 billion El Paso centre. The new audit and regulatory hurdles may lengthen approval timelines, increase financing scrutiny, and push developers toward alternative energy solutions like off-grid systems or battery-backed flexible connections. As the state grapples with balancing economic goals against public sentiment, the future of its data centre boom remains uncertain, potentially impacting billions in investment and thousands of jobs.