Data centers have become the largest driver of surging electricity demand that is straining US power grids. But the AI data center boom has also accelerated investment in a technology that could provide a silver lining for everyone—solid-state power transformers that replace industrial-age technology with modern power electronics.

Power grids currently rely on conventional transformer technology that is painstakingly assembled by hand and has a fundamental design dating back to the 1880s. Two copper wire coils manually wound around a steel core create electromagnetic fields that help step up voltage levels of alternating current electricity for long-distance transmission or step down voltage levels for the electricity use of homes and businesses. The largest power transformers cannot be mass-manufactured but are instead custom-built for each utility company’s electrical substations.

Manufacturing constraints, coupled with the scramble to upgrade US power infrastructure, have meant utility companies and other customers must wait up to several years for delivery of new power transformers. That is not only a problem for expanding power grid infrastructure to support growing electricity demand, but also delays the process of replacing aging power transformers.

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Nowhere is the US data center boom bigger than in Texas. But less than a year after declaring Texas the “epicenter of AI development,” Governor Greg Abbott has declared a moratorium on all new power grid connections for data centers—at least until developers provide more information about their projects’ potential impacts on the grid and communities.

The Republican governor directed regulators in an August 3 announcement at the Public Utility Commission of Texas and the grid operators at the Electric Reliability Council of Texas (ERCOT) to perform a “comprehensive verification and audit of all data centers advancing through ERCOT’s interconnection process.” As an independent system operator, ERCOT oversees a power grid that operates separately from the rest of the United States and provides services to most of Texas.

Texas has aggressively courted data center development with its availability of cheap land and relatively abundant energy resources, along with offering state incentives, like tax breaks and fewer regulations. That puts the state on track to surpass Virginia in becoming the largest US data center market.

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Satellite images have revealed new damage to Amazon data centers in the Middle East along with at least one crucial Saudi oil facility, following missile and drone attacks by Iran and its Houthi allies.

The images from Europe’s Copernicus Sentinel-2 satellites provide evidence of a widening war as the United States and several Gulf states exchange military strikes with Iran, the Houthi faction in Yemen, and Iran-backed militias in Iraq. Such satellite images also offer independent verification of claimed war damage, despite the US government having pressured US commercial firms and even Europe to restrict satellite imagery of the region.

Three Amazon data centers in the United Arab Emirates and Bahrain were already previously damaged by Iranian drone strikes on March 1. Those earlier attacks stuck Amazon with months of expected repairs and forced Amazon Web Services customers in the Middle East to migrate workloads to other cloud regions.

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