Texas’ data center permit freeze amid surging grid requests

An a16z Newsletter essay says ERCOT’s queue for large new customers grew from 63 GW at the end of 2024 to 474 GW by June 2026, about 90% of it data centers. The author argues that speculative requests, grid reliability and disputes over who pays for upgrades complicate approvals. The essay calls for narrowing the permit freeze and letting credible projects connect sooner if they pay for reserved capacity and can cut power use when the grid is tight.