Texas approves plan to review first batch of data centers

By Shelby Webb | 06/18/2026 01:19 PM EDT

The state Public Utility Commission voted Thursday in favor of rules to help study large projects seeking to connect to the grid.

An entrance to an artificial intelligence data center complex in Abilene, Texas.

An entrance to an artificial intelligence data center complex in Abilene, Texas, is seen. Matt O'Brien/AP

Texas regulators approved a new set of rules Thursday for a wave of data centers and other large power users seeking to plug into the state’s main grid, but they reduced the amount of nonrefundable fees that developers would need to pay.

The state Public Utility Commission voted to set criteria that data centers will need to meet in order to be part of Batch Zero — the first group of projects that the Electric Reliability Council of Texas will approve for interconnection under a new approval system.

ERCOT and the PUC have now both approved studying new data centers and other large power users in groups rather than individually, a plan state officials say will help grid officials more accurately divvy up electricity.

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Data center project developers have been clamoring to get into Batch Zero because projects in that first group will be allocated power based on the grid’s current capacity. Projects in later batches may need to wait years for more transmission to come online before they get a green light to connect to the state’s main grid, which ERCOT manages.

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