A16Z · 7 October 2026 · Industry Analysis

Why Texas Is Making Data Centers Wait

A16Z

Texas has paused new data center permits amid a 7.5x surge in grid interconnection requests, forcing developers to navigate interconnection queues, reliability standards, community concerns, and emerging behind-the-meter power strategies—revealing systemic constraints that will shape US infrastructure buildout.

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Topics: Energy & Climate · AI Infrastructure · Manufacturing & Industrials

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