Texas Energy Nexus

ERCOT · Permian Basin · Gulf Coast

Texas runs its own grid, produces more oil and gas than any other state, and is asking that grid to absorb AI campuses, fabs and gigafactories faster than it can connect them. Large-load requests on the ERCOT grid total about 474 GW, more than five times the 91.1 GW record peak set in July 2026.

Governor Abbott's Aug 3, 2026 letter; about 90 percent data centersLarge-load requests474 GW 373 projects excluded from Batch Zero, Sep 2026Batch Zero excluded302.2 GW 158 projects classified as studied loadBatch Zero studied load127.9 GW Summer 2026 ERCOT recordRecord peak demand91.1 GW 204 projects conditionally classified as base loadBatch Zero base load66.4 GW
Grid
ERCOT
Record peak
91.1 GW
Load requests
474 GW
Batteries
18.7 GW
Nuclear
Two plants
Sector
Energy

Overview

One Grid, One Gas Basin and a Queue Five Times the Peak

The Electric Reliability Council of Texas (ERCOT) runs the Texas Interconnection, which carries about 90 percent of state electric load and sits outside Federal Energy Regulatory Commission (FERC) jurisdiction. The Permian Basin in West Texas supplies the natural gas that fuels most ERCOT generation, the Houston Ship Channel refineries and the Gulf Coast liquefied natural gas (LNG) terminals.

Comanche Peak in Somervell County and the South Texas Project in Matagorda County supply nuclear baseload. West Texas wind, Northeast Texas solar and a battery fleet of about 18.7 GW at the end of September 2026 make up most new capacity. AI data centers, Samsung Taylor, the Terafab fab in Grimes County and Tesla Giga Texas are the new loads.

Profile
Grid operatorERCOT, overseen by the PUCT
Share of state loadAbout 90 percent
Record peak91.1 GW, summer 2026
Large-load requestsAbout 474 GW (Aug 2026)
Battery storageAbout 18.7 GW (September 2026)
Nuclear plantsComanche Peak, South Texas Project
Main gas sourcePermian Basin
Large-load lawSenate Bill 6 (2025)

Grid and policy

Texas Is Auditing Every Large Data Center Before It Connects

Senate Bill 6 (SB 6), signed June 21, 2025, set interconnection standards for loads of 75 MW or more and lets ERCOT curtail them in a grid emergency. On June 18, 2026 the Public Utility Commission of Texas (PUCT) approved Batch Zero, a single system-wide study of every qualifying large load. See ERCOT Large Load Interconnection.

Governor Greg Abbott ordered the PUCT and ERCOT on Aug 3, 2026 to audit every data center in the interconnection process before more are approved. ERCOT paused the Batch Zero study and the energization of new data center and crypto loads of 75 MW or more. Abbott added the Texas Water Development Board (TWDB) to the audit on Sept 14, and on Sept 21 ordered the Texas Commission on Environmental Quality (TCEQ) to pause all data center air and water permits, including permits for on-site power plants, until the review ends. ERCOT's report is due by Dec 10, 2026. See Texas Data Center Moratorium.

The largest campuses build their own gas plants, covered in Behind-the-Meter Power. Those plants qualify for the JETI Act school-tax limitation that data centers themselves cannot use.

Generation and fuels

Permian Gas, West Texas Wind and a Fast-Growing Battery Fleet

Permian gas runs the combined-cycle and peaking fleet and now feeds dedicated data center plants such as Chevron's Energy Forge One near Pecos. Harris County refineries and Gulf Coast LNG terminals take the rest of the gas and crude, shipped through the Port of Houston and the Port of Corpus Christi; see Gulf Coast Nexus.

The Competitive Renewable Energy Zone (CREZ) lines, completed in 2014, carry West Texas wind to the Texas Triangle metros. ERCOT added about 14.7 GW of batteries between summer 2025 and summer 2026, more than any other resource except solar. Tesla builds Megapack 3 and Megablock in Brookshire, and SpaceX is planning a gas turbine blade foundry in Bastrop.

Water is the input Texas cannot add with new plants: supply depends on rainfall, aquifers and river basins, and the Sept 14 TWDB order requires data centers to report their water use.

Pages

Texas Energy Nexus Pages

Pages in the Texas Energy Nexus section
PageSectorCoverage
ERCOT Energy SovereigntyGridHow ERCOT runs the Texas grid outside FERC jurisdiction, its DC ties and the post-Uri reforms
ERCOT Large Load InterconnectionGridThe 75 MW large-load line, SB 6, Batch Zero and the 2026 audit of data center requests
The JETI ActPolicyThe school-tax limitation that excludes data centers but covers the gas plants built to power them
Behind-the-Meter PowerPowerOn-site generation consumed directly by data centers, fabs and gigafactories
Brownfield InheritanceSitesNew projects reusing the water rights, grid ties and zoning of retired industrial sites
Southern Spirit Transmission HVDCGridPattern Energy's planned 3,000 MW HVDC line linking ERCOT to Southeastern grids
Texas BESS ConcentrationStorageGrid-scale battery growth across ERCOT since Winter Storm Uri, and the leading operators
Comanche Peak Nuclear Power PlantNuclearVistra's two-unit plant in Somervell County and its data center power deals
South Texas Nuclear StationNuclearThe two-unit Matagorda County plant co-owned by Constellation, CPS Energy and Austin Energy
Aalo AtomicsNuclearAustin developer of factory-built reactors for data centers, with the Aalo-X test reactor in Idaho
Texas Geothermal EnergyGeothermalHouston geothermal developers, the Sage plant at Christine, and wells at the load versus grid-delivered power
Permian Basin EnergyOil and gasWest Texas oil and gas, and the gas-fired power plants planned for data center campuses
Houston Ship Channel PetrochemicalOil and gasHarris County refineries and chemical plants supplying fuels, gases and solvents
Texas LNG Export HubOil and gasGulf Coast liquefied natural gas terminals from Brownsville to Sabine Pass
Texas Green Hydrogen HubHydrogenThe HyVelocity Gulf Coast hub, Infinium in Pecos and electrolyzer factories around Houston
Samson Solar Energy CenterSolarInvenergy's Northeast Texas solar plant in Lamar, Red River and Franklin counties
Roscoe Wind ComplexWindRWE's four-farm West Texas wind complex in Nolan, Mitchell, Scurry and Fisher counties
Rodeo Ranch Energy StorageStoragePlus Power's standalone battery near Pecos in Reeves County
Tesla Megapack and Megablock at BrookshireStorageTesla's Waller County factory building Megapack 3 and Megablock grid batteries
Bastrop Turbine Blade FoundryPower equipmentSpaceX's planned foundry casting gas turbine blades in Bastrop County
Texas EV Charging for Robotaxis and TrucksChargingTesla robotaxi depots in Austin, Semi Megachargers on I-10 and megawatt truck lanes on I-45
Texas Water Supply and StressWaterAquifers, river basins and the industrial water demand of data centers and fabs
Water and Cooling in Large FacilitiesWaterClosed-loop and air cooling in data centers, and ultrapure water recycling in fabs

Record

Dataset Record

Sources
ERCOT, Public Utility Commission of Texas, Office of the Governor, Texas Comptroller, Texas Legislature (SB 6), US Energy Information Administration, Bloomberg Government, RTO Insider, Pillsbury, Troutman Pepper Locke, Willkie Farr, Foley and Lardner, Sheppard Mullin, Energy Ogre, Grist
Last verified
October 2026