- Texas approved Batch Zero to study large data-center power requests collectively.
- ERCOT is tracking over 438 GW of requests, with 89% tied to data centers.
- Projects above 75 MW must post a $50,000 deposit per MW and show project progress.
Texas regulators have approved a new process aimed at managing the flood of power requests from data centers and other large electricity users.
The Public Utility Commission of Texas (PUCT) approved the Electric Reliability Council of Texas’s (ERCOT) “Batch Zero” framework on June 18, replacing the old one-by-one method for handling major grid connection requests.
Texas Changes Grid Connection Process
Under the new system, projects requiring at least 75 megawatts (MW) of electricity will be evaluated together rather than individually. ERCOT said the change will help it measure combined demand, assign grid capacity, and identify transmission upgrades needed to support future growth.
The move comes as Texas faces a sharp rise in applications. ERCOT is tracking more than 438,000 MW of large-load requests, with nearly 89% tied to data centers.
Separate estimates show more than 480 data center projects seeking more than 418 GW of electricity through 2032. Texas’ record peak demand stands at 85.5 GW, meaning the requested power is nearly five times higher.
The old system was built for around 40 to 50 large projects. In 2025 alone, ERCOT received 225 new applications, far above the levels the process was designed to handle.
New Rules Aim to Remove Paper Projects
Batch Zero is designed to filter out speculative projects and focus on those that are ready to move forward. Large power users must provide financial security equal to $50,000 per MW and show development progress to qualify. Projects that are further along will receive priority.
ERCOT President and CEO Pablo Vegas said the framework creates a more structured process for managing the rapid growth in large electricity users while protecting grid reliability.
The framework also follows Senate Bill 6, which was signed into law by Governor Greg Abbott in June 2025. The law requires data centers and other large consumers to cover their own interconnection and infrastructure costs instead of passing those expenses to residential customers.
Industry experts said the growth in AI facilities and data centers has increased the need for more transmission lines, transformers, and other grid infrastructure across Texas.
Timeline Runs Through 2027
ERCOT plans to notify Batch Zero applicants about their classifications in August 2026. A final transmission plan is expected in fall 2027. Applications for Batch 1 are scheduled to open in summer 2027, creating a continuous process for future projects.
Texas added roughly 23 GW of new generation capacity between 2024 and 2025, with more supply expected in 2026. However, the increase remains far below the more than 418 GW of power demand currently waiting in the queue.
The new framework does not increase the power supply immediately. Instead, it changes how projects enter the system and requires developers to demonstrate they have financing, land control, and realistic construction plans before securing grid access.
Crypto Miners May Hold an Advantage
The new rules also affect cryptocurrency miners and AI infrastructure developers. Some bitcoin miners already control land and power assets in Texas and have been exploring conversions of mining facilities into AI data centers.
These sites still require upgrades for high-performance computing, including different cooling and networking systems. However, companies that already have power infrastructure in place may have an advantage as ERCOT tightens screening requirements.
Related: OpenAI Eyes $500 Billion Ohio Data Center Campus With Nvidia Backing
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