Senate Bill 6 Reforms Interconnection and Co-Location Rules for Data Centers and Other Large Loads in ERCOT

Senate Bill 6 ("SB6"), recently signed into law in Texas and effective immediately, will significantly impact data center developers, cryptocurrency miners, advanced technology manufacturers and other large-load customers in the ERCOT region. Stakeholders pursuing new or expanded interconnection, or planning to co-locate with existing generation resources, may experience significant changes to project timeline, cost, design and operation.

Texas remains an attractive market for large-load customers due to its streamlined development and interconnection processes, businessfriendly regulatory and tax environment, historically reliable and affordable power and competitive wholesale electricity market. Reflecting this trend, ERCOT projects that statewide power demand could nearly double by 2030, driven largely by increased interconnection requests from large-load customers, including data centers and Permian Basin operators electrifying their operations. In the two