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Why Texas Is Making Data Centers Wait

Texas is pausing or slowing approvals for new data centers, a policy examined in a new a16z essay. The state's power grid strain and surging demand from AI-driven computing are central concerns, and the piece weighs whether permitting delays will protect electricity reliability or slow investment in critical digital infrastructure.

Why now: Data center growth is straining power grids, and Texas's decision to slow approvals raises questions about balancing AI infrastructure demand with grid reliability.

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