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This policy shift marks a significant regulatory hurdle for AI infrastructure, as Texas imposes strict audits on data center proposals citing grid stability concerns amidst massive power demand surges. The requirement to disclose water usage, incentives, and community impacts signals that energy-intensive computing projects face increasing scrutiny beyond just technical feasibility.
Texas says data centers must pass an audit before connecting to the grid

Texas announced new a audit on data centers that could slow approval for new facilities seeking to connect to the state energy grid. Governor Greg Abbott (R) on Monday directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to verify and audit new data center proposals, writing that the review is needed to "keep the grid stable and reliable." Data centers will need to provide information on state and local incentives they've received, how much they'd rely on the state grid, expected water consumption and sources, and how they plan to track community impacts including noise. It's not cle … Read the full story at The Verge.
is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and…
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