Texas and Cape Town Tighten Data Center Approvals, Potentially Benefiting Digital Realty and Equinix
Texas ordered a broad audit of data center projects in ERCOT's interconnection queue in August. Separately, a proposed 122,500-square-meter hyperscale project near Cape Town tied to Equinix faces challenges over power and water concerns, as reported by the Financial Times on September 13. These restrictions on new supply could increase the value of existing powered campuses for established operators like Digital Realty and Equinix. Digital Realty publicly committed to Texas Governor Greg Abbott's data-center standards on August 7. Hedge funds increased their holdings in both companies in Q2 2026, prior to these developments.
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