Meta and Digital Realty face a shifting Texas regulatory landscape as the state audits 474 gigawatts of power requests, balancing the potential for a competitive moat against the risk of project delays.
Texas Governor Greg Abbott has ordered a rigorous audit of over 474 gigawatts of data center projects, forcing major players like Meta and Digital Realty to comply with stricter infrastructure standards. While these companies have pledged cooperation, the new regulatory burden threatens to increase capital costs and delay critical AI capacity expansion across the state.
The state is auditing projects to manage the massive influx of power requests, which currently total over 474 gigawatts, to ensure grid stability and prevent infrastructure costs from being unfairly shifted to consumers.