Texas’ grid operator unveiled proposed requirements this week for data centers seeking to plug into the state’s main electric grid, setting up a rush among developers.
Data center companies will be scrambling this year to be part of the first group to receive possible interconnection agreements in the sprawling region managed by the Electric Reliability Council of Texas.
Sites that aren’t part of that first group — which ERCOT calls Batch Zero — may need to wait years to receive approvals to connect to the grid as Texas works to build out more transmission lines to accommodate data center demand. Projects that aren’t selected for Batch Zero could end up abandoning the state, according to some Texas electricity experts.
“We’re not really sure what exists after Batch Zero,” said Arushi Sharma Frank, an executive adviser with Nvidia-backed Emerald AI, during a conference Thursday in Dallas. “Who is in Batch One that will still want to start or finish the project in Texas? And why wouldn’t you go somewhere else where you already have similar, very expensive options to go and build your next site?”
