The Hub: The Digital Infrastructure & Artificial Intelligence Blog

Key Takeaways Texas’ approach to data center development continues to evolve. As Butler Snow previously reported, Governor Greg Abbott’s August 3, 2026, directive called for additional review of data centers seeking to connect to the ERCOT grid, adding to an already changing regulatory landscape for large electric loads in Texas. Since that directive, legislative hearings…

Gov. Abbott sent a public letter to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) yesterday directing the PUC and ERCOT to conduct comprehensive audits of all data centers prior to approving interconnection to the ERCOT grid. Subsequently, ERCOT issued a market notice stating that it will not meet…

On August 3, 2026, Governor Greg Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct a comprehensive verification and audit of all data center projects advancing through ERCOT’s interconnection process. The review is intended to confirm that each project satisfies applicable PUCT and ERCOT requirements before proceeding…

Texas has long been recognized as a national leader in economic development, attracting significant investment across the technology, manufacturing and energy sectors. As artificial intelligence continues to accelerate demand for digital infrastructure, the state has emerged as one of the country’s most attractive markets for data center development. That growth has also sparked a broader…

Introduction and Overview Under Texas law, the Electric Reliability Council of Texas (“ERCOT”), the independent system operator for the electric grid, is subject to pervasive oversight by the Public Utility Commission of Texas (“PUCT”).  The statute gives the PUCT authority to delegate to ERCOT the authority to write rules governing reliability-related grid operations, and the…

Data center developers love Texas.  Speed to power is the name of the game. Consequently, many developers focus on available acreage, proximity to gas pipelines, access to water, transmission grid availability, and nearby fiber.  Location matters for all those things.  But for an islanded generation + large load combination, another location-specific consideration matters—one that many…