The Definitive Guide toAI Data Centers
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AI data centers in Texas & ERCOT

ERCOT's energy-only market and co-location with West Texas wind, solar, and gas can create project-specific power paths — 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
on-site gas LCOE must be modeled for the named plant from heat rate, gas price, capacity factor, capex and financing, O&M, emissions and permits, interconnection and standby costs · Ch 3.4Project-specific LCOE2026-08-24U.S. Energy Information Administration
large-load interconnection requests ERCOT is tracking (~90% data centers; arc: 63 → 233 → 438 → 474 GW; more than 5x ERCOT's record peak demand). Batch Zero paused 2026-08-03 by gubernatorial directive pending a PUCT/ERCOT project-by-project audit · Ch 3.1~474 GW2026-08Abbott directive letter (2026-08-03, ~474 GW / ~90% DC); prior print 438+ GW (ERCOT, 2026-06-18). BNEF estimates the pause could delay ~50 GW. Operating sites unaffected.
Texas sales-tax revenue forgone to the data-center exemption (~$1B+/yr) · Ch 3.10~$3.3B / biennium2026-07Texas Comptroller via Senate Finance hearing (2026-07-27); Texas Tribune; Holland & Knight
ERCOT 'large load' threshold forcing full interconnection + protection study (25 MW = modeling) · Ch 4.275 MW2026ERCOT Large Load Integration; SB6
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

RuleThresholdStatus / next actionSourceVerifiedReview by
US (Texas)ERCOT Planning Guide §9 / PGRR145 — Batch Zero large-load integrationNew load ≥75 MW; existing-load increase ≥75 MW; specified point-of-interconnection changesBatch Zero implemented; PUCT SB 6 rulemaking remains a separate live process
Next: Track Batch Zero studies and PUCT Project 58481
Electric Reliability Council of Texas2026-08-242026-09-30

What this means for your schedule

For each ERCOT project, obtain the applicable large-load study path, host-utility agreement, upgrade scope, curtailment obligations, power rights, and dated milestones; neither a market label nor co-location guarantees an earlier service date. The design basis must also 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.