Texas grid operator ercot develops new system to handle surge in data center and crypto mining power requests

Texas is grappling with an unprecedented surge in power demands from data centers and cryptocurrency mining operations, prompting the state’s grid operator to overhaul how it handles large-scale electricity requests. The Electric Reliability Council of Texas (ERCOT) is developing a new “batch processing” system to evaluate multiple high-energy interconnection requests simultaneously, rather than reviewing them one by one.

The new approach comes as ERCOT faces a backlog of applications from power-hungry industries seeking to plug into the Texas grid. Data centers supporting cloud computing and AI operations, along with energy-intensive cryptocurrency mining facilities, have flooded the system with requests that can strain local power infrastructure. The current first-come, first-served approach has created bottlenecks and delays that can stretch for months or years.

ERCOT’s solution involves creating what they call “Batch Zero” – a priority group of large power users who have been waiting longest for grid connections and whose projects require minimal additional technical study. This inaugural batch will serve as a pilot for the new simultaneous review process, which aims to speed up approvals while maintaining grid reliability.

The stakes are high for both the environment and the economy. While these facilities can bring jobs and economic growth to Texas, they also significantly increase electricity demand, potentially requiring more fossil fuel generation if renewable energy capacity doesn’t keep pace. ERCOT expects to finalize the selection criteria for Batch Zero by the end of this month, setting a precedent for how Texas will manage the growing intersection of technology infrastructure and energy demand.