Texas’ Public Utility Commission has approved a new connection process proposed by the Electric Reliability Council of Texas (ERCOT) to ensure that large-load users, such as data centers, connect at grid points capable of supporting their demand.

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Under the new framework, projects will enter a batch, with ERCOT studying the eligible projects to determine grid needs and capacity. Subsequently, transmission capacity will be allocated based on what the grid can support, with ERCOT then developing and publishing a transmission plan identifying necessary upgrades.

According to officials, the new batch process is the first instance of an independent system operator adopting such rules for large-load users.

"Texas is experiencing an energy transformation unlike anything we have seen before," ERCOT president and CEO Pablo Vegas said in a statement. "This new process represents a fundamental shift in how ERCOT manages the significant growth of large load interconnection, providing a structured, transparent path forward that protects reliability for Texans while supporting the state's continued economic growth."