Texas debates grid rule changes to connect data centers

By Shelby Webb | 04/20/2026 06:56 AM EDT

The Public Utility Commission and grid managers are discussing ways to handle large projects while balancing costs and reliability.

A vehicle travels on a road near a tower supporting power lines in Brownfield, Texas.

A vehicle travels on a road near a tower supporting power lines in Brownfield, Texas. Julio Cortez/AP

Texas electricity regulators weighed major rule changes Friday as the state wrestles with how to bring an onslaught of new demand onto the grid without increasing costs for ratepayers or jeopardizing reliability.

At an open meeting, the state Public Utility Commission mulled proposed requirements for data centers and other large power users seeking to connect to the state’s main power grid more quickly.

Commissioner Kathleen Jackson said the PUC is working to tailor rules to address the unprecedented situation Texas is facing. The state’s main power grid operator Wednesday forecast that it could see demand more than quadruple to 367.8 gigawatts by 2032 — up from a record high of 85.5 GW set in 2023.

Advertisement

“I think part of the challenge we have is that these are nuances. These are new loads — big loads — that are coming into the system,” Jackson said. “What we’re trying to do is to accommodate that and — quite franklyfacilitate that — but to make sure we are preserving the reliability of the system and the ability of the incumbents to continue to operate.”

GET FULL ACCESS