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
US large-load grid interconnection lead time end-to-end; up to ~10 yr in the worst queues — the binding constraint · Ch 0.1~3–7+ yr2025ERCOT / PJM filings synthesis
large-load grid interconnection lead time — volatile and region-dependent; up to ~10 yr in worst queues · Ch 0.23–7+ yr2025ERCOT / PJM filings synthesis
US large-load grid interconnection lead time end-to-end; up to ~10 yr in worst queues — the gate behind self-build · Ch 1.6~3–7+ yr2026LBNL Queued Up; ERCOT / PJM filings
large-load grid interconnection, application to energization; up to ~10 yr in the worst queues · Ch 2.13–7+ yr2025ERCOT / PJM filings synthesis
large-load grid interconnection lead time the LGIA/ISA milestones must bind around; up to ~10 yr worst queues · Ch 2.4~3-7+ yr2025ERCOT / PJM filings synthesis
ERCOT large-load interconnection queue, early 2026 (~87% data centers; ~4x YoY) · Ch 3.1~410 GW2026RTO Insider / Latitude Media / ERCOT
large-load interconnection end-to-end; PJM application-to-COD has exceeded 8 yr; up to ~10 yr in worst queues · Ch 3.23–7+ yr2025ERCOT / PJM filings synthesis
ERCOT large-load queue end-2025 (~300% YoY); ~198 GW screened Q1 2026, ~70%+ data centers · Ch 3.2233+ GW2026ERCOT / Utility Dive
Texas/ERCOT commercial rate — among the lowest in the US on the deregulated market · Ch 3.3~8.7¢/kWh2026Electric Choice
large-load interconnection lead time; up to ~10 yr in worst queues — the availability gate · Ch 3.3~3-7+ yr2025ERCOT / PJM filings synthesis
grid interconnection lead time (large load); PJM application-to-COD over 8 yr; up to ~10 yr worst queues · Ch 3.43–7+ yr2025ERCOT / PJM filings synthesis
industrial gas-fired LCOE for on-site/BTM power, above projected ERCOT grid prices · Ch 3.4>~$120/MWh2026domain synthesis (ISO/EPRI)
Texas average data-center water intensity; ~49 bn gal statewide by end-2025 · Ch 3.7~793 gal/MWh2025Texas analyses (Inside Climate News / industry)
large-load grid interconnection lead time; up to ~10 yr in worst queues — the usual long pole · Ch 3.9~3-7+ yr2025ERCOT / PJM filings synthesis
Texas sales-tax revenue forgone to the data-center exemption (~$1B+/yr) · Ch 3.10~$3.2B / 2 yr2026Texas Comptroller; Texas Tribune
Texas property-tax abatement tiers over 10 yr; Virginia local reductions reach ~80% · Ch 3.1050% or 75%2025Texas Comptroller; domain synthesis
Texas/ERCOT data center demand by 2028 (~1/3 of projected US demand); large-load queue grew ~300% YoY · Ch 3.13~40 GW2026domain-research synthesis; ERCOT filings
ERCOT 'large load' threshold forcing full interconnection + protection study (25 MW = modeling) · Ch 4.275 MW2026ERCOT Large Load Integration; SB6
large-load grid interconnection lead time end-to-end; up to ~10 yr in worst queues · Ch 4.33–7+ yr2025ERCOT / PJM filings synthesis
ERCOT Large Load site threshold; "Large Electronic Load" = ≥50% power-electronic computational demand (NPRR1234 / NPRR1308) · Ch 4.10≥75 MW / ≥50%2025ERCOT NPRR1234, NOGRR 282

Regulatory watchlist

RuleThresholdStatusVerified
US (Federal)SEC climate-disclosure rule — 2024 rule subject to 2026 rescission proposalregistrants (phased)PROPOSED RESCISSION — enforcement uncertain2026-06
US (California)SB 253 (GHG disclosure) + SB 261 (climate-financial-risk disclosure)rev. >$1B (253) / >$500M (261)Enacted, phasing in2026-06
US (Texas)ERCOT large-load interconnection — process & curtailable/large-load terms evolving (SB-driven)large loads (e.g. >75 MW)Evolving2026-06
US / multiBIS advanced-compute export controls — periodic tightening affecting accelerator availability & data residencyadvanced GPUs/HBMEvolving2026-06