A growing queue of proposed data centers is forcing Texas utilities and regulators to confront a difficult question: how much electrical infrastructure should be built for projects that may never open?
Dallas-based Oncor Electric Delivery reported approximately 293 gigawatts of data-center connection requests in its queue as of September 30. That number is far larger than Texas’ recent peak power demand, but it should not be mistaken for electricity currently being consumed. A request is not a completed project or a firm commitment.
Oncor expects significant construction spending to maintain and expand its network. The company has discussed a roughly 20 percent increase in its next five-year capital program, although the final plan and its costs remain subject to further decisions.
Large proposed projects can require new substations and transmission lines. If developers withdraw, regulators must consider who bears the cost of work already undertaken. Oncor says it holds billions of dollars in customer collateral intended to reduce that exposure, but that does not prove future household bills will rise because of the projects.
Texas communities also face questions about land use, water demand and local economic benefits. The practical test will be how regulators distinguish realistic power needs from speculative applications while protecting reliability and ratepayers.