Texas freezes data center permits as queue hits 474GW, five times peak demand
aleximm · x · 2026-10-08
Texas' grid operator ERCOT had 63GW of large customers in its interconnection queue at end-2024; by June that hit 474GW—over five times record peak demand, 90% of it data centers—prompting a freeze on new permits. The a16z article cites spammy speculative applications and weak community engagement (only 28 of 377 projects had answered residents by June), while 56% of Texas voters fear higher bills. a16z investors counter that a US study shows residential rates fall 40bps per 10% increase in data center capacity, as large stable customers spread the grid's fixed costs. The core question: who pays for shared infrastructure.
Related event: Texas Freezes Data Center Approvals as Grid Queue Swells to 474GW(3 posts)→
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