Why Texas Is Making Data Centers Wait
Texas froze new large-load permits after ERCOT's queue hit 474 GW, about 90% data centers.
ERCOT's queue of large new customers jumped from 63 GW at the end of 2024 to 474 GW by June, more than five times record peak demand and about 90 percent data centers, before Texas froze new permits. Planners cite speculative duplicate applications and poor disclosure: as of June only 28 of 377 companies had answered a state resource-use survey. Colocation disputes include FERC rejecting a direct Talen nuclear supply to an Amazon campus at Susquehanna, later restructured, and PUCT conditions on CyrusOne's 760 MW Freestone site and Crusoe projects that must curtail quickly. ERCOT adopted Batch Zero studies for loads of 75 MW or more and a voltage ride-through rule, noting the isolated grid can lose only about 3.2 GW of load at once under some conditions.
- ERCOT's large-load queue rose from 63 GW to 474 GW, mostly data centers.
- Texas escalated from upgrade-cost rules to a freeze on new permits.
- Only 28 of 377 companies had answered a June resource-use survey.
- Batch Zero studies loads of 75 MW or more together.
- Ride-through rules target mass load drops during grid faults.
From the original article
15 min read at a16z.com
At the end of 2024, Texas’ grid operator had 63 GW of large new customers in its queue. By this June, that figure reached 474 GW , more than five times record peak demand, about 90% of it data centers. Then Texas hit pause .
By gmays · a16z.com
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