AUSTIN, TEXAS — Texas is putting the brakes on new data-center power connections as regulators confront a growing problem at the heart of America's artificial-intelligence boom: nobody is certain how much electricity future computing projects will actually need.
The state's decision comes as utilities across the United States face enormous requests from companies seeking electricity for new data centers.
The Electricity Race Behind Artificial Intelligence
The scale of proposed demand is extraordinary.
Utilities and grid operators have received requests representing more than 700 gigawatts of potential electricity demand across major parts of the country.
That figure is far above the power currently consumed by American data centers.
The gap has created a new problem for regulators.
Some projects are legitimate and backed by major technology companies.
Others may never be built.
Developers can request electricity capacity years before construction begins, making it difficult for utilities to determine which projects deserve priority.
Texas has responded by temporarily freezing new connections while it reviews proposed developments.
Other states are considering similar safeguards.
The issue matters because utilities cannot simply build power plants and transmission lines overnight.
If they overestimate demand, consumers could eventually pay for infrastructure that is never used.
If they underestimate demand, grid reliability could suffer.
Artificial intelligence has therefore created a new financial question for the energy industry.
Who should pay for the enormous infrastructure required to support computing?
Technology companies argue that data centers generate investment, jobs and economic growth.
Consumer advocates counter that households should not subsidize speculative projects.
The debate is likely to spread as states compete to attract AI facilities.
Cheap and reliable electricity is becoming one of the most important factors determining where the next generation of computing infrastructure will be built.
The AI boom may have started as a software story.
It is increasingly becoming a power-grid story.
