Texas power grid operators are preparing for an unprecedented influx of data centers, with the Electric Reliability Council of Texas set to vote on a new evaluation process that could reshape how large energy users connect to the grid.

In the first quarter of 2026 alone, nearly 200 proposed data centers and other large energy users requested to join the Texas grid. Currently, data centers, cryptocurrency miners, and industrial facilities are seeking a combined 438 gigawatts of power in Texas — more than five times the electricity used to power the entire state during record-breaking demand.

But that number is likely inflated by proposed facilities that will never be built, according to University of Texas research scientist Joshua Rhodes. “I haven’t really believed the numbers for two years now,” Rhodes said.

Texas has the fastest-growing data center market in the country and could lead the nation in the sector in the coming years. As these facilities flock to Texas, ERCOT is trying to understand which projects are actually feasible — and what infrastructure is needed to build them.

The agency’s board is set to vote on a new process that could help weed out speculative projects. Under the proposed rules, data centers would be evaluated in batches rather than individually. Criteria may include whether applicants have secured land, financing, and ordered components and computing equipment.

“You end up in this never-ending re-study loop,” Rhodes said of the current system, noting the difficulty of evaluating whether sufficient transmission equipment exists when new projects are constantly being proposed nearby.

Matt Boms, executive director of the Texas Advanced Energy Business Alliance, said data centers will also have to make a financial commitment to be evaluated. “The thinking there would be for large loads to put up some investment and some guarantee that they’re really coming to do business here in Texas,” he said.

If approved, the process will begin by evaluating a group of data centers known as “Batch Zero.” The Data Center Coalition, a membership association for the industry, has said it is still seeking clarity from ERCOT regarding many components of the new framework.

Source: Houston Public Media | Business of Houston