Texas freezes new data center connections as power queue seeks 474 GW

  • Texas ordered PUCT and ERCOT to stop approving new data center and other large-load connections as of August 3.
  • More than 1,800 projects seek 474 GW in ERCOT, with data centers accounting for roughly 90% of requests.
  • ERCOT suspended its Batch Zero study pending an audit, while Pennsylvania and Ohio tightened project-screening rules.

Texas has frozen new connections for data centers and other large-load projects after an ERCOT queue surpassed 474 gigawatts across more than 1,800 requests, while electricity requests from very large users across parts of the Midwest, Mid-Atlantic and South exceeded 700 gigawatts. About 90% of Texas's queued capacity is associated with data centers, but utilities and regulators warn that many proposals may be duplicative or lack financing, customers, power sources or firm commitments. The uncertainty is complicating grid planning and could leave consumers paying for infrastructure that is either insufficient or never used. ERCOT suspended its Batch Zero interconnection study pending an audit, while Pennsylvania and Ohio adopted tighter screening rules. Exelon cut its high-probability data center demand estimate by about 40% to 11 gigawatts after stricter collateral requirements, and AEP Ohio's pipeline fell by more than half after study fees of up to $100,000 were introduced. Proposed and forecast data center growth has also contributed to a $29.4 billion increase in PJM capacity costs over roughly the past four auctions.

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