The Definitive Guide toAI Data Centers
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Regional guidesTexas & ERCOT

AI data centers in Texas & ERCOT

ERCOT's energy-only market, fast interconnection paths, and co-location with West Texas wind, solar, and gas make it the speed play — priced in exposure to scarcity pricing, curtailment economics, and grid-islanding risk that the design basis must own.

Where the deltas are derived

Texas & ERCOT in the register

FigureValueAs ofSource
Texas average commercial retail electricity price — among the lowest in the US (statewide all-in average; competitive-supply quotes in deregulated ERCOT territories run lower) · Ch 3.3~8.4¢/kWhApr 2026EIA Electric Power Monthly, Table 5.6.A
large-load requests ERCOT is tracking (~89% data centers; 63 GW end-2024 → 233 GW end-2025 → 438 GW Jun 2026) · Ch 3.1438+ GW2026-06ERCOT news release (18 Jun 2026)
ERCOT 'large load' threshold forcing full interconnection + protection study (25 MW = modeling) · Ch 4.275 MW2026ERCOT Large Load Integration; SB6
industrial gas-fired LCOE for on-site/BTM power, above projected ERCOT grid prices · Ch 3.4>~$120/MWh2026ISO/EPRI
Texas sales-tax revenue forgone to the data-center exemption (~$1B+/yr) · Ch 3.10~$3.2B / 2 yr2026Texas Comptroller; Texas Tribune
US large-load grid interconnection lead time end-to-end; up to ~10 yr in worst queues — the gate behind self-build · Ch 0.1~3–7+ yr2026LBNL Queued Up; ERCOT / PJM filings
projected ERCOT data-center load in 2028; the same forecast reaches approximately 40.1 GW in 2030 · Ch 3.13~28.2 GW2025-12-15Electric Reliability Council of Texas
curtailment-enabled headroom at 0.5% in PJM / MISO / ERCOT (SPP also ~10 GW; Southern ~8 GW) · Ch 15.818 / 15 / 10 GW2025Duke Nicholas Institute (via Utility Dive)
planned Stargate capacity across the Abilene flagship + five new US sites — multi-campus by necessity, not choice · Ch 8.8~7 GW2025OpenAI / Data Center Frontier
Texas average data-center water intensity; ~49 bn gal statewide by end-2025 · Ch 3.7~793 gal/MWh2025Houston Advanced Research Center (HARC), 'Thirsty Data and the Lone Star State'
Texas Chapter 312 property-tax abatement of eligible incremental property value, locally negotiated for up to 10 years · Ch 3.10up to 100%2025Texas Comptroller of Public Accounts

Regulatory watchlist

RuleThresholdStatusVerified
US (Texas)ERCOT large-load interconnection — process & curtailable/large-load terms evolving (SB-driven)large loads (e.g. >75 MW)Evolving2026-06

What this means for your schedule

ERCOT is the speed play: the interconnection figures above are the shortest in this table, and behind-the-meter co-location shortens them further. What you buy with that speed: the design basis must own scarcity-hour economics, an SB6-class curtailment response (ride-through, on-site generation, or workload shedding), and West Texas water reality. Budget the hedge strategy with the same seriousness as the substation.

Turn this into dates: the lead-time planner reverse-schedules every long-lead PO from your target — the queue figures above set which packages are already late.