Texas governor halts new data center grid connections, hitting power stocks

Texas Governor Greg Abbott has ordered a pause on approvals for new data centers seeking to connect to the state's power grid, pending a full audit. The move, intended to protect grid reliability and water supplies, sent shares of Texas-based power generators tumbling, with Vistra falling 8% and NRG Energy dropping 15%. Conversely, shares of companies providing off-grid power solutions, like Caterpillar and Innio, advanced on the news.