McKinsey
Global management consultancy; contracted by ERCOT to develop a framework for managing its 225 GW large-load backlog.
Last refreshed: 6 May 2026 · Appears in 1 active topic
Can McKinsey design a queue process that handles 225 GW of ERCOT data-centre demand?
Timeline for McKinsey
Contracted to deliver short- and mid-term solutions framework for ERCOT large-load queue
Data Centres: Boom and Backlash: ERCOT large-load queue passes 225 GW- Why did ERCOT hire McKinsey to help with data-centre grid connections?
- ERCOT contracted McKinsey to develop a framework for managing its 225+ GW large-load queue, more than 70 per cent of which is from data centres — a backlog its process was designed for 40-50 requests at a time cannot handle.Source: ERCOT
- What is McKinsey's role in the ERCOT large-load process?
- McKinsey is contracted to deliver a framework for short- and mid-term large-load queue solutions, focusing on batch-study implementation and flexible interconnection models.Source: ERCOT Large Load Working Group
- What consulting work is McKinsey doing for ERCOT?
- ERCOT contracted McKinsey to develop a framework for managing its 225+ GW large-load interconnection queue, more than 70% of which is data-centre related. The work focuses on short- and mid-term solutions including batch studies and flexible interconnection models.Source: ERCOT Large Load Working Group
- Is McKinsey involved in AI infrastructure planning in the US?
- Yes. McKinsey's ERCOT contract for large-load queue management is one example. The firm also publishes research on AI energy demand and data-centre infrastructure strategy, making it a regular presence in public utility and government planning for AI-driven grid pressures.Source: ERCOT / McKinsey
Background
McKinsey & Company is contracted by ERCOT to deliver a framework for short- and mid-term solutions to the Texas grid operator's surging large-load queue, which passed 225 GW in April 2026, with more than 70 per cent from data centres. The March 2026 Large Load Working Group focused on batch-study implementation and flexible interconnection models — the procedural changes most likely to come out of McKinsey's work. West Texas operators wanting to repurpose 9.1 GW of existing crypto-mining infrastructure for AI compute are applying particular pressure to that process.
McKinsey & Company was founded in 1926 in Chicago and is the world's largest management consulting firm, advising governments, utilities, and technology companies across energy, infrastructure, and digital transformation. Its energy and materials practice has published extensively on power-sector capacity additions and AI-driven demand growth, including forecasts cited in FERC and state regulatory proceedings.
McKinsey's involvement at ERCOT is notable because the Texas grid's governance structure means that FERC's upcoming RM26-4-000 order will not apply there: ERCOT is the primary routing point for operators seeking to escape federal jurisdiction. A McKinsey-designed queue framework that is too restrictive could push operators back toward FERC-regulated grids; too permissive and ERCOT risks reliability. The firm's work is therefore one of the two key near-term variables shaping US data-centre siting, alongside FERC's June order.
