Texas Grid Collision: ERCOT’s Batch Zero & Governor Abbott's Data Center Audit
Three major developments related to large loads occurred in Texas this week.
First, ERCOT’s CEO Pablo Vegas presented the first update on the “Batch Zero” process. Batch Zero requires large load applicants over 75 MW – mostly data center – to demonstrated control of sites, prove financial wherewithal, pay $50,000 per MW of load, and submit an initial qualifying study that would allow them to proceed in the Batch Zero process. The initial qualifying deadline for inclusion was July 10.
Second, Texas Governor Greg Abbott sent a letter to ERCOT and the Public Utility Commission (PUC) directing them to audit all prospective loads for water and power use, as well as received tax benefits.
Third, after receiving this directive, ERCOT requested the PUC to grant a Good Cause Exception to slow down Batch Zero until it can addressed Abbott’s mandate, though it asked for some exceptions.
Let’s start with ERCOT’s presentation as it told us a few things:
First, the number increased from 474 GW cited in Abbot’s letter reflecting an earlier snapshot from about a month ago - to 500 GW in ERCOT’s latest interconnection queue.
Second, of that 500 GW, 294 GW is no longer in play. It didn’t qualify for Batch Zero. That gets the number down to
about 205 GW. Of that total, 114 GW (127 projects) have existing studies that qualify them for the Batch Zero process as “Allocated Load.”
The next 25 GW (49 projects) submitted existing studies qualifying them for Batch Zero, and also submitted dynamic model data. They were to have been reviewed by August 7th with ERCOT determining whether they are “Base” or “Allocated Load.” Base Loads are those already validated with pre-determined capacity requirements, while Allocated Load has no such entitlement and will be allocated capacity based upon available transmission capabilities.
The final grouping of 65 GW (150 projects) have been determined to be considered as Base Load.
ERCOT was planning to communicate its final determinations as to the make-up of Batch Zero by September 2. That was the plan prior to Governor Abbott’s letter. Then things changed.
That letter noted that ERCOT; 474 GW of interconnection requests (w/90% from data loads) was over 5X the state’s record peak demand. For further perspective, I’ll note that the U.S. coincident peak demand day in 2025 was 759 GW on July 29. So, yeah, 474 GW is big.
That huge load growth, Abbott stated, “could endanger the reliability and stability of the Texas electric grid.”
I’ll comment that even the 205 GW that’s still being considered in Batch Zero could do the same thing.
This is becoming a bi-partisan issue. Blue states started with the moratoria, as in NY State, but others are jumping in. A recent survey shows opposition to data centers has grown considerably on both sides of the aisle over just the past six months.
But now the questions in Texas arise: “What does this mean in practice?” What will be included in these audits, who will undertake them, how long will the process take for each applicant, how does one get into the queue for this undertaking, what are the implication for not passing and what are the remedies for failure?
Then came ERCOT’s August 10th Good Cause Exception request for relief, noting that studies will require time to complete. It will provide an update at the upcoming August 20th Open Meeting. ERCOT also requested an exception to continue processing 23 Large Loads – MW amounts were not specified - that interconnecting distribution and and transmission companies had requested be classified as base load and that ERCOT determined eligible to qualify as base load but had not yet formally classified. That basically holds their place in line while the audit process plays out.
So, the situation is still very muddy and will be for some time.