Texas
Second-largest US state; top crude producer, ERCOT grid operator, 2026 midterm battleground.
On 21 September, Governor Greg Abbott halted Texas data-centre permits amid a 438 GW grid queue, requiring developers to show they can fund their power and water needs.
Last refreshed: 24 September 2026 · Appears in 4 active topics
Does the Texas Senate shift to a tossup threaten Republican control of the chamber?
Timeline for Texas
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US Midterms 2026Background
Texas is a US state whose durable weight comes from its scale and energy economy. The Permian Basin lies in Texas, and West Texas Intermediate is the US crude benchmark linked to Texan production and Gulf Coast refinery demand.
Most of the state's electricity grid is run by the Electric Reliability Council of Texas, or ERCOT. Its large-load connection system makes Texas important to decisions about generation, transmission and industrial demand.
Together, oil production and a distinct power market give Texas influence over commodity pricing and power-intensive development. That relevance rests on physical output, refinery demand and the ability to connect major new electricity loads.
Texas tightens data-centre permits
On 21 September, Governor Greg Abbott ordered Texas's environmental regulator to halt permits for new and pending data-centre projects. Developers must show they can pay for the grid and water their sites require. The order followed a 438 GW connection queue, of which data centres account for about 90 per cent.
Texas had already approved an ERCOT process on 18 June to clear the queue, with a final transmission plan due in autumn 2027. Projects needing power before then face a choice between waiting for grid capacity and arranging their own generation. The permit halt adds state environmental scrutiny to a connection problem that had already become central to Texas's data-centre investment case.
Texas Senate race draws opaque funding
On 15 September, TEXAS PAC and No Going Back PAC Inc. reported more than $85m spent on Texas's Senate race without naming a donor in their Schedule A filings. The filings disclosed spending through 48-hour notices, which reveal the amount and purpose before later donor reports are due.
By 21 September, TEXAS PAC's reported spending had reached $69.32m, split between $36.75m supporting Ken Paxton and $32.57m opposing James Talarico. For Texas, the contest now carries a transparency question alongside its electoral stakes, because voters can see the volume and direction of advertising before they know who financed it.