Texas recently became the first major hub to pause new grid connections for data centers and launch an investigation into their plans, aiming to address the issue of inflated power demand from these facilities, Reuters analysis shows. Other U.S. states are adopting similar measures to tackle this growing problem, which is vexing regulators and politicians nationwide. Data indicates that power demand applications from data centers in the U.S. Midwest exceed 700 gigawatts, more than 10 times current industry estimates. Texas Governor Greg Abbott has ordered a comprehensive audit of data center proposals, requiring detailed disclosures such as ultimate ownership, to ensure grid stability and reliability. Some utilities have significantly cut their demand forecasts for data centers after implementing stricter financial safeguards, such as upfront payments. For instance, Exelon has reduced its forecast by approximately 40%, and AEP Ohio by more than half.