Texas grid operator, ERCOT, is considering pull back some data centers as it does approval evaluations on previously approved projects. The move comes as massive AI-related data centers continue to spring up around Texas. The Electric Reliability Council of Texas (ERCOT) wants to examine projects unlikely to advance and provide greater clarity for when new sites are ready to connect to its system. Projects historically have been approved by utilities. However in recent years ERCOT has had to determine how this flood of new users can be served without breaking the grid.

Under an Ercot proposal, projects representing about 8.2 gigawatts of power consumption could be subject to review. These remarks were noted by Trudi Webster, a spokesperson for the grid. The state-owned firm ensures amicable flow of power and makes sure the grid is not overburdened. Its proposal is a bet it can both remove kinks that have bogged down projects and not undermine the state’s AI boom.

The grid operator previously had solicited feedback from dozens of companies including Alphabet Inc.’s Google and Meta Platforms Inc. It also sought insight from Amazon. Earlier this week, it publicly unveiled its proposal with participants including developers, power plant operators and utilities. More than 700 people tuned it. Massive data center projects are being carried out in Texas such as Anthropic U.S. data center buildout, a $50 billion project.

The Scope of Implementation on the Texas Data Centers Approval Evaluations

The Texas data centers approval evaluations by ERCOT aim to review projects in batches in a bid to evaluate their collective impact to the grid. This removes the hassle of doing reviews per project which can then be subject to additional reviews. The review’s aim is to integrate projects, make adjustments to the grid as needed, then move onto the next group. These batch studies will take place every six months, and to start ERCOT has dubbed the most advanced projects as Batch Zero.

Jeff Billo, vice president of interconnection and grid analysis at ERCOT, said it’s imperative to move to a system where there is “one study to rule them all.” He also noted this is because ERCOT is on the verge of going back to developers that have cleared studies to say they have to reopen because original assumptions have changed. The projects that could again be reviewed are a fraction of the staggering haul of those seeking connections.

There were more than 250 gigawatts as of Friday, about three times its total capacity today. Nonetheless, ERCOT plans to hold another workshop next week and then submit its plan later this month to state regulators for approval.

Project Factsheet: ERCOT Reassesses Data Center Approvals

• Project: Texas data center approval reviews
• Location: Texas, United States
• Operator: Electric Reliability Council of Texas (ERCOT)
• Sector: Power grid / data centers / AI infrastructure
• Core Issue: Surge in AI-driven data center power demand straining grid approvals
• Action: Re-evaluation of previously approved data center projects
• Capacity Under Review: ~8.2GW of potential electricity demand
• Reason: Identify projects unlikely to advance and improve clarity on grid connection timing
• Process Change: Shift from individual project reviews to batch interconnection studies
• Study Frequency: Every six months
• Initial Phase: “Batch Zero” covering the most advanced projects
• Context: More than 250GW of projects seeking grid connection, around three times ERCOT’s current system capacity
• Engagement: Over 700 participants in public ERCOT sessions
• Objective: Maintain grid reliability while supporting continued AI and data center growth