Texas PUC Sets Curtailment Rules for AI Data Center Co-Located With Wind Farm
The Public Utility Commission of Texas approved a net metering arrangement on July 24, 2026, for a 260-MW AI data center co-located with a wind farm of roughly equal capacity, in a decision Utility Dive reports could serve as a template for future behind-the-meter load projects in ERCOT territory. The data center is the second planned for the site, and developer Crusoe had argued that combined site load of about 525 MW, which exceeds the 265.5-MW generation resource’s capacity, should exempt the project from standard curtailment rules. The commission rejected that argument, instead adopting ERCOT’s proposed reliability conditions: the facility must be able to curtail its full load within 30 minutes during grid emergencies, including physical breaker disconnection if needed, and it cannot participate in paid demand response programs tied to the arrangement. ERCOT is directed to give 60 minutes’ notice “when practicable,” though operators can voluntarily commit to a faster 10-minute response.
The order is one of the first major tests of Texas’ SB 6, which gave ERCOT authority to disconnect large loads during emergencies. A pending Amazon-Vistra co-location application at the Comanche Peak nuclear plant near Fort Worth is now seen as the next case to watch for how these rules get applied.
What It Means for Subcontractors
- Electrical and controls contractors bidding on behind-the-meter data center or hybrid generation projects in ERCOT should design for full-load disconnection capability within 30 minutes, including physical breaker isolation, not just software-based curtailment.
- Firms pursuing work on co-located load projects should note that backup power systems may now need to carry a facility fully off-grid for an extended period, not just ride through short interruptions, per GridTracker co-founder Chris Talley’s read of the order.
- Subs eyeing similar projects should track the outcome of the Amazon-Vistra Comanche Peak co-location application, as PUCT and ERCOT’s treatment of that case will signal how strictly these curtailment terms get applied to nuclear-adjacent and other large-load sites.
