This post was originally published on Data Center Knowledge
As AI workloads proliferate, data center power needs are surging. Grid interconnections, siting decisions, and financing models are being rethought to meet timelines in months rather than years. Across utilities, developers, and operators, a single imperative has emerged: deliver power faster.
Texas as a Test Bed
Texas has become a leading hub for large-scale data centers, surpassing long-time strongholds like Northern Virginia. Speaking at PowerGen International in San Antonio on January 20-22, 2026, Elaina Ball, Chief Strategy Officer at CPS Energy, noted that regional grid capacity is being stretched by accelerating demand.
Ball noted that the Electric Reliability Council of Texas (ERCOT) can supply up to 85 GW of power during peak hours, yet even that level falls short of future needs. An additional 230 GW of planned capacity is in the interconnection queue seeking grid access, she said. To address bottlenecks, Texas has advanced rule changes aimed at faster interconnections and clearer cost allocation.
A key development is Senate Bill 6, which introduces a series of changes with direct implications for data center growth. One reform allows interconnection applications to be processed in batches rather than one at a
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