Texas has paused approvals for new data centers as Governor Greg Abbott orders a sweeping audit of projects seeking access to the states power grid. The move comes as Elon Musk expands his Texas footprint and concerns grow over soaring electricity demand, water use and the impact of AI data centers on local communities.

Here’s why “behind the meter” projects should have nothing to fear from Texas Governor Abbott’s new data center audit.

The longer the moratorium stays in place, the greater the risk to Texas’ data center boom, analysts at Bloomberg NEF said.