In June, the Public Utility Commission of Texas (PUCT) approved a new Electric Reliability Council of Texas (ERCOT) process known as “Batch Zero,” clearing the way for a massive group of data center projects to move through the grid interconnection process together instead of being evaluated individually. The projects represent the largest single wave of data center development in Texas history.
ERCOT President Pablo Vegas lauded PUCT’s decision last month, noting the Batch Zero approval provides “structured, transparent path forward that protects reliability for Texans.” Abbott, however, has dramatically shifted his tone on data centers in recent weeks. The governor called for an end to the construction of data centers in rural Texas during a campaign event last week. He said in June he wants to end tax breaks for data center construction across Texas, adding he wants the PUCT and ERCOT to require data centers to pay for their own infrastructure and reuse their own water.
Abbott now strikes a populist tone in his data-center skepticism. But his calls for action may amount to little more than political messaging because of the state’s legislative timetable.
Texas’ legislature is not scheduled to meet again until January 2027, just a few months before ERCOT is expected to approve the Batch Zero projects officially. Even if an April vote successfully implemented a new guardrail bill against data centers, experts believe that would be too late to stop the projects included in Batch Zero.
“Even in that case, the Batch Zero studies would be finished,” Chris Kirby, a partner at the Balch & Bingham law firm, told Politico’s Shelby Webb. “I would be surprised if [bills passed in 2027] applied to the Batch Zero projects.”
Batch Zero projects appear on track to receive final approval without a delay from the Texas state legislature. Webb notes Texas politicians could still impact the operations of these Batch Zero projects via future retroactive requirements, though there remains skepticism whether those would be implemented by Abbott and the rest of the Texas GOP.
“I think Gov. Abbott’s [letter] he put out on June 10, it doesn’t appear to call for retroactive laws,” Kirby said. “It calls for prospective laws.”
ERCOT has a June 1, 2027 date to finalize all Batch Zero plans. The Texas legislature will return on Jan. 12, 2027, barring the calling of a special session.