Common Questions

How big is ERCOT's data centre connection queue?: ERCOT's large-load interconnection queue reached 233 GW in early 2026, FAR exceeding Texas's current peak demand of roughly 85 GW. Data centres and AI facilities account for a large share of new applications.Source: Lowdown data-centres briefing
Why is ERCOT isolated from the rest of the US grid?: ERCOT was designed to avoid interstate commerce regulation by the Federal Energy Regulatory Commission (FERC). Texas's grid operates largely independently, with limited interconnection to neighbouring systems. This isolation means Texas cannot easily import power during supply shortfalls.Source: ERCOT
What is Texas doing about the data centre power demand surge?: Texas has largely welcomed data centre demand. HB 1500 (2024) introduced disclosure requirements for large loads. The ERCOT queue remains open, and state legislators have resisted restricting connections, leaving capacity decisions to the market.Source: Lowdown data-centres briefing

Background

ERCOT (Electric Reliability Council of Texas) operates the electric grid for approximately 90% of Texas, the largest US state electricity market. The organisation is the canonical example of AI-driven grid stress in the United States: its large-load interconnection queue reached 233 GW as of early 2026, a figure that dwarfs Texas's current peak demand of roughly 85 GW. Much of this demand is from data centres, AI facilities, and industrial loads attracted by Texas's relatively light regulatory environment.

The xAI Colossus complex in Memphis does not sit in ERCOT's territory (Memphis is served by TVA), but ERCOT is the grid whose queue dynamic most clearly illustrates why large-load operators are pursuing behind-the-meter generation. xAI's 41-turbine approval was partly a product of the expectation that grid power cannot be delivered at the speed or scale required. ERCOT's queue has prompted Texas legislators to consider reforms, and the 2024 HB 1500 large-load notification bill introduced some basic disclosure requirements.

ERCOT is unusual in being isolated from the wider US grid — it has limited interconnection capacity to neighbouring regions — which makes its demand-supply balance a localised rather than national problem. The organisation has faced criticism for under-investing in transmission capacity ahead of the AI infrastructure wave.

Source Material

ERCOT interconnection queue ERCOT official site

How the World Sees Them

Texas government

Texas has positioned itself as the most data-centre-friendly US jurisdiction. The queue size is cited as a sign of success, not a warning. State legislators have resisted capacity restrictions.

Environmental groups

The queue's size implies a massive expansion of gas generation, since renewables alone cannot be built fast enough to meet it. Critics warn Texas's isolated grid cannot export surplus renewables and risks over-building fossil capacity.

Data centre operators

ERCOT's queue illustrates why behind-the-meter generation is attractive: even in the most permissive US grid market, connection wait times are years long for large loads.