Texas ERCOT adopts stricter grid access rules for data centers

Texas operates an independent power grid managed by ERCOT, which has limited interconnection with neighboring grids and therefore reduced ability to import emergency electricity. The state has attracted substantial data center investment in recent years, driven by available land, lower costs, and favorable policy conditions - making Texas one of the primary destinations for large-scale computing infrastructure. That growth has complicated ERCOT's demand forecasting and long-term planning, as large industrial loads can appear quickly and at concentrated locations. Reliability concerns have remained prominent since the February 2021 winter storm exposed significant vulnerabilities in the Texas grid. Regulators have framed the new data center interconnection rules as a structural response to the challenge of managing unpredictable, high-volume electricity demand.