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ARTICLE · 29 SEPTEMBER 2026

Data Center Deep Dives: Texas

K&L Gates
K&L Gates
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K&L Gates

K&L Gates

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Texas has become a major hub for hyperscale data center development, driven by abundant energy resources and a business-friendly environment. However, rapid growth is creating significant challenges around power availability, transmission infrastructure, water resources, and regulatory oversight. This program examines the legal, regulatory, and commercial developments shaping data center projects across Texas, providing practical insights for developers, investors, operators, and stakeholders navigating

United StatesEnergy and Natural Resources
Maria C. Faconti
Maria C. Faconti
Kate Goodrich
Kate Goodrich
Olivia  Byrne
Olivia Byrne

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Ithe last decade, Texas has emerged as one of the most significant markets for hyperscale data center development in the United States. Its abundant energy resources, competitive electricity market, available land, and business-friendly environment have attracted unprecedented levels of investment. At the same time, rapid growth is creating new challenges related to power availability, transmission infrastructure, water resources, permitting, and state and local regulatory oversight, and with growing opposition, the state has experienced numerous challenges.

This Texas-focused program will examine the legal, regulatory, and commercial developments shaping data center projects across Texas and provide practical insights for developers, investors, operators, utilities, and other stakeholders navigating this rapidly evolving landscape. The program will focus on legislative efforts in light of the Governor Abbott’s August third audit request and the Texas Public Utility Commission and ERCOTs’ implementation.

 Participants will gain practical insight into:

  • Key market and policy developments driving data center growth across Texas, including challenges
  • Electric power, transmission, and ERCOT-related considerations affecting project viability and timelines
  • Emerging legislative, regulatory, and commercial trends that may influence future data center investment and operations
  • Getting ready for the 2027 Texas legislative session

This session is designed for developers, operators, investors, infrastructure providers, and public sector stakeholders seeking to better understand the opportunities and risks associated with data center development in one of the nation's most active growth markets and the impacts of regulatory uncertainty.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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