Sun, Jul 12

NEWS: Does ERCOT have the remedy for data center-driven grid chaos?

  • The latest: The Texas PUC unanimously approved rules that order computational loads >75 MW (including data centers) to stay online during short-term grid disruptions. And if facilities don’t comply? ERCOT can cut them off…until they show proof they’re following orders. Last month, CAISO proposed similar rules.

  • The context: Data centers on the East Coast and in Texas experienced GW-scale load drops in 2024 and 2025. Power pros want to avoid a dangerous domino effect that takes substations and generators offline. And as Texas-sized, GW-scale data centers crop up in the Lone Star State, things could get ugly quickly.

  • The pushback: Data center operators don’t seem too keen on the idea—staying online during electricity disturbances can damage equipment or shut off entire facilities. Plus, these ride-through rules could cost them up to $1M per megawatt of power. 

  • What’s next: Data centers and crypto-mining facilities that got ERCOT approval to come online on or after Nov. 15, 2025 must follow these rules. But litigation is likely incoming: Some large-load customers have claimed that ERCOT didn’t have the authority to make this call.