
PUCT staff backs ERCOT’s proposed operating conditions in an early test of Texas’ new framework for colocated data centers.
Will ERCOT publish updated colocation operating conditions for AI data centers by July 31, 2026?
Resolves by Jul 31, 2026
Texas regulators are deciding whether AI data centers built behind existing wind farms must shut down completely during grid emergencies so the wind farm's power can be returned to the electric grid. The question arises because a new framework allows large electrical loads to colocate with existing generators using shared interconnection points, which speeds up development timelines but creates uncertainty about emergency reliability requirements. One company argues that if one data center at a site already must shut down during emergencies, a second one should not have to do the same, while regulators contend that all loads sharing a generator's interconnection point must remain capable of full shutdown to preserve grid access. The state's decision will set a precedent for how future AI campuses can be developed in Texas.

AI workloads are outpacing network capabilities, leaving expensive chips idle. Mark Rushworth explains why the switch is the bottleneck and how to fix it.

The news comes about a week after OpenAI announced its own custom AI chip in a partnership with Broadcom.

Google reported that its annual electricity consumption rose by 37 percent in 2025—the largest increase in the company’s history as Silicon Valley’s AI data center buildout continues. But the tech giant says it kept operational carbon emissions down by continuing to purchase massive amounts of clean energy. The company’s latest sustainability report acknowledges that Google’s total electricity usage has increased by more than 250 percent since 2019, which the company attributed to ongoing growth
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