Texas and California Reportedly Tighten Data-Center Grid and Resource Requirements
DataNews Editorial Team
A single source reports that Texas has effectively paused new grid connections, construction permits and environmental certificates for new facilities pending an ERCOT audit. In California, the same source describes new developer obligations covering grid upgrades, clean energy, water-use disclosure and local water infrastructure.
- Texas is reported to have paused new grid connections, construction permits and environmental certificates pending an ERCOT audit.
- California measures reportedly place grid, clean-energy and water-infrastructure obligations on data-center developers.
- The proposed federal Ratepayer Protection Act would target campuses with peak demand above 100 MW, according to the source.
- Developer-funded infrastructure requirements could raise delivery risk for power-intensive campuses and favor sites with secured power supply.
- The reported 45 blocked projects and more than US$68 billion in aggregate value lack project-level detail and geographic scope.
Texas and California are reportedly imposing tighter infrastructure conditions on new data-center development as power-system and local-resource constraints become more prominent.
According to the source, Texas has effectively frozen grid connections for new facilities until completion of an ERCOT audit. It also says that new construction permits and environmental certificates are not being issued during the review. The pause is expected to run until December, although no specific end date or formal underlying order was provided.
In California, the source reports that developers are required to fund grid upgrades and deploy clean-energy resources to offset additional demand. It further describes obligations to disclose water withdrawals and water-use efficiency during drought periods, as well as to finance local water infrastructure.
At the federal level, Congress is considering the Ratepayer Protection Act, according to the source. The proposal would apply to large campuses with peak demand above 100 MW and, as described, would require owners to fully fund grid interconnection and infrastructure upgrades. The measure is under consideration and has not been presented as enacted legislation.
The source also claims that 45 projects with aggregate total-project value exceeding US$68 billion were blocked in the second quarter of 2026. It does not identify the projects, their locations or the methodology used, and it is unclear whether the figure relates only to Texas and California or to the wider US market.
If the reported measures are applied as described, they could shift development criteria toward demonstrable grid capacity, water availability and early-stage funding plans for off-site infrastructure. For operators and developers, this could increase the importance of power strategy and interconnection economics before site selection and campus design are finalized.
If implemented as described, the measures would tie data-center development more closely to available grid capacity, water resources and developer-funded external infrastructure. That could increase project cost, timing risk and uncertainty for power-intensive campuses, while raising the value of sites with secured power supply.
- — / September 22, 2026 · RussianSource →