Texas Grid Regulator Approves Batch Zero to Manage Unprecedented Data Center Queue

AUSTIN, Texas — The Public Utility Commission of Texas approved ERCOT’s new “Batch Zero” large-load interconnection framework on June 18, 2026, launching the state’s first systematic attempt to manage an unprecedented 438-gigawatt queue of projects seeking to connect to the Texas power grid, nearly 90% of which are data centers.

Dallas, the third-largest city in Texas with approximately 1.3 million residents, anchors the DFW metroplex and is home to AT&T, Southwest Airlines, and Texas Instruments headquarters as well as a surging data center market.

The 438 GW tracked by ERCOT represents more than five times the grid’s all-time peak demand of 85,508 megawatts, set in August 2023. ERCOT’s own forecasts had projected peak load reaching 367,790 MW by 2032, driven by more than 250,000 MW of large-load requests. However, ERCOT officials acknowledged those forecasts are likely inflated, as many projects in the interconnection queue are speculative and may never be built.

Under the new Batch Zero process, ERCOT will study groups of large projects simultaneously rather than evaluating each one individually. Only projects that meet a “maturity criteria”—having secured financing and land—will be eligible for the first batch, with inclusion decisions expected by August 2026. A final transmission plan for Batch Zero is slated for fall 2027, and a second round of applications will open in summer 2027.

“Texas is experiencing an energy transformation unlike anything we have seen before. This new process represents a fundamental shift in how ERCOT manages the significant growth of large load interconnection, providing a structured, transparent path forward.” — Pablo Vegas, ERCOT President and CEO

“It will be the first step in that solution set actually being defined. We could potentially be solving a national issue on how to do this in a way that can be done reliably, stably, with consideration for the economic growth considerations, with consideration for the cost implications and with consideration for the reliability and stability of the grids that are going to support these assets.” — Pablo Vegas, ERCOT CEO

The reform comes amid growing bipartisan backlash against data center development across Texas. Governor Greg Abbott directed the PUCT and ERCOT in a June 10 letter to shield residential ratepayers from data center infrastructure costs and pledged to pursue legislation in the next session requiring data centers to report their electricity and water usage, use water-efficient technologies, and pay for their own electric infrastructure. The PUCT and ERCOT were given a July 17 deadline to outline steps taken and identify any statutory limits on their authority.

On the same day the PUCT approved Batch Zero, the Federal Energy Regulatory Commission concluded that most grid operators’ existing rules for large-load interconnections are insufficient, directing them to develop their own frameworks. Energy analysts have called ERCOT’s approach “the first market design that is ready-to-ship for large loads that actually solves reliability risk, transmission affordability, and siting loads to benefit all ratepayers, simultaneously,” positioning Texas as a potential national model.

Source: https://www.utilitydive.com/news/texas-facing-438-gw-queue-approves-initial-large-load-interconnection-pro/823367/