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ARTICLE · 08 JULY 2025

Important Texas Regulatory Updates For Data Centers

Mayer Brown
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On May 27, 2025, the Texas Legislature passed SB-6, which introduces significant changes to the planning, interconnection, operation, and cost allocation of certain large electrical loads...

United StatesEnergy and Natural Resources
Cameron Sabin
Cameron Sabin
Gabriel Salinas
Gabriel Salinas
Kseniia Kolontai
Kseniia Kolontai
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On May 27, 2025, the Texas Legislature passed SB-6, which introduces significant changes to the planning, interconnection, operation, and cost allocation of certain large electrical loads within the Electric Reliability Council of Texas ("ERCOT"), including data centers. SB-6 primarily aims to ensure that large-load customers contribute fairly to the recovery of costs incurred by electric utilities when interconnecting and serving these loads. SB-6 also aims to support economic growth and maintain grid reliability. SB-6 was signed by Texas governor Greg Abbott on June 20.

Key Provisions

Standards for Large Load Interconnections & Cost Sharing

SB-6, among other things, amends the Texas Utilities Code ("TUC") and directs the Public Utility Commission of Texas ("PUCT") to establish standards for interconnecting large-load customers, defined as those with loads exceeding a default threshold of 75 megawatts at a single site, subject to possible adjustment by the

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