In April 2025, ERCOT revised its outlook for future load growth to include 35 GW of peak demand from Data Centers by 2035 - a number that is nearly half the current system peak.

This shift is part of a wave hitting power systems nationwide. Technology giants are descending on Texas to build hyperscale Data Centers en masse, drawn by the state’s inexpensive power supply and abundance of land.

But the realities of connecting to the power system could prove to be the limiting factor.

How fast can growth actually go?

For subscribers to Modo Energy’s Research, the full analysis includes:

• Data Center growth projections for Texas
• An overview of Senate Bill 6 - Texas’s legislation on Large Load interconnection
• Analysis on why the global shortage of gas turbines could limit Data Center buildout
• And the opportunities this brings to energy developers

If you have any questions regarding the content of this article, reach out to ovais@modoenergy.com in the US Research team.

Key Takeaway: Data Center growth in Texas is expected to fall short of the ERCOT forecast

Data Center growth in Texas will be limited by the speed at which sites can access power.

All other factors - access to land, the availability of water for cooling, and a steady supply of semiconductors - have the potential to slow buildout, but will not be the primary constraint.