Texas law gives grid operator power to disconnect data centers during crisis

AI generated summary

Texas has enacted a significant law, Senate Bill 6, which empowers the Electric Reliability Council of Texas (ERCOT) to disconnect large non-critical power consumers, including data centers, during energy crises. This legislation mandates curtailment during firm load shed events and introduces a voluntary demand response program for loads of 75 MW or more. The law aims to ensure that large power consumers do not compromise grid reliability, especially as Texas anticipates a surge in data center growth, potentially reaching 138 GW by 2030.

The law also establishes new interconnection rules and fees, which are expected to provide clarity for independent power producers and data centers. While the mandatory program is designed to alleviate stress on the ERCOT grid during extreme weather, the success of the voluntary program remains uncertain, as some data center operators may resist participation. Overall, Senate Bill 6 seeks to balance the needs of large power consumers with the reliability of Texas's electricity grid, potentially serving as a model for other states facing similar challenges.