Texas Gov. Greg Abbott has ordered state regulators to audit pending data center projects seeking connections to the state's electric grid, a move ERCOT says effectively pauses those projects as Texas grapples with soaring electricity demand driven by artificial intelligence infrastructure.

Abbott on Monday directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to review pending data center projects and deny grid connection requests for facilities that fail to meet state requirements.

ERCOT told Fox News Digital the governor's directive "effectively pauses all data center projects."