Texas Grid Operators and Regulators Iron Out New Rules for Data Centers

Arcelia Martin | Source: Inside Climate News | Posted 10/13/2025

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New state legislation seeks to address grid challenges from hosting large energy users like data centers while remaining an attractive place to do business.

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Texas has enacted new legislation, Senate Bill 6, allowing grid operators to remotely disconnect data centers and large energy users during extreme grid stress. This law aims to manage the increasing energy demands of data centers while ensuring grid reliability, particularly in light of past crises like Winter Storm Uri. The legislation shifts transmission costs to large users and establishes measures for grid reliability and demand forecasting, with ongoing discussions among regulators and stakeholders about its implementation.

As data centers dominate the large load interconnection queue in Texas, concerns have arisen regarding the potential impact of these new regulations on business operations. Industry representatives have expressed worries that additional oversight could deter investment in Texas, while also seeking clarity on definitions and requirements related to large load users. The legislation aims to balance economic development with grid stability, as regulators work to finalize the rules governing the energy-intensive data center sector.

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Source Link: https://insideclimatenews.org/news/10102025/texas-grid-operators-and-regulators-iron-out-new-rules-for-data-centers/

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Texas Grid Operators and Regulators Iron Out New Rules for Data Centers

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