Data center site selection in Texas: workforce and power
New grid rules and a statewide audit now shape when a data center can connect. The workforce plan needs the same early attention.
ERCOT’s large-load queue holds an estimated 474 GW of requests, about 90% from data centers, and approvals to energize large new data centers are paused pending a state audit. Construction also depends on electricians and other trades in a tight market. Here are the questions to ask before choosing a site.
Analysis | October 31, 2026
In an August 3 letter, Governor Abbott described an estimated 474 gigawatts of requests in ERCOT’s large-load interconnection queue. That is more than five times the state’s record peak demand, and about 90% of the requests come from data centers. [1]
Since then, the state has added new conditions. For a company choosing a site, or a community deciding whether to pursue a data center, two questions now set the timeline: can the project get power, and can the region build and run it?
Power: new rules and a statewide audit
Senate Bill 6, signed on June 20, 2025, set new rules for loads of 75 megawatts or more. They include an interconnection study fee of at least $100,000, disclosure of on-site backup generation equal to at least half of the proposed load and curtailment rules for large loads connected after December 31, 2025. [2]
The Public Utility Commission adopted its implementing rule on September 18, 2026. It requires financial security of $50,000 per megawatt of requested peak demand before the interconnection study and sets a flat $100,000 study fee. [3]
The larger change is timing. After the Governor’s August 3 directive, ERCOT paused approvals to energize data centers and cryptocurrency mining facilities of 75 megawatts or more and delayed its Batch Zero study of large loads. [4] On September 21, the Governor directed the Texas Commission on Environmental Quality to halt permits sought by data centers until ERCOT completes its audit. [5]
ERCOT’s September board update shows where the queue stands. In Batch Zero, 204 projects totaling 66.4 GW were conditionally included as base load, 158 projects were included as studied load and 373 projects totaling 302.2 GW were excluded. ERCOT expects to file its eligibility verification and community impact reports on December 10, 2026. [4]
The same update lists the counties with the most base and studied load: Cameron (12,235 MW), Dallas (7,637 MW), Jones (7,000 MW), Harris (6,899 MW) and Childress (6,750 MW). [4]
BloombergNEF estimated in August that the audit could delay 49.8 GW of new data center demand. [6] In the sources reviewed for this post, I found no announcement that the pause has been lifted.
Workforce: the next constraint
Once power is settled, the data center still has to be built. Associated Builders and Contractors estimates that the construction industry needs to bring in 349,000 net new workers in 2026. ABC reports that demand for electricians has risen with data center construction and that about one-fifth of electricians are over 55. Its model adds about 3,450 construction jobs for every $1 billion of new construction spending. [7]
In Texas, TWC’s long-term projections show electricians growing 18% from 2022 to 2032, with 7,798 openings a year. The Texas Workforce Investment Council also cites a Texas Association of Builders estimate that 40% of construction workers are expected to retire by 2031. [8]
Some developers are paying for training directly. Google announced a $40 billion investment in Texas through 2027, including new data centers in Armstrong and Haskell counties, and support for the electrical training ALLIANCE to train more than 1,700 apprentices in Texas by 2030. [9]
Those are statewide and national figures. The local question is narrower: how many electricians and other skilled trades live within a reasonable commute of the site, and which other projects will be hiring them at the same time?
Questions to ask before choosing a site
For a site selector, an economic development team or a community weighing a proposal, I would ask these questions early.
Power
- Where is the project in ERCOT’s large-load process, and was it included, studied or excluded in Batch Zero?
- Will the project bring its own generation, and how much backup generation must it disclose?
- Can the operating plan handle curtailment during grid emergencies?
Water and permits
- Which state permits does the project need, and are any affected by the current permit halt?
- How much water will it use, and how will that use be reported?
Workforce
- How many construction workers will the project need at peak, and for how long?
- How many electricians and other trades live within the commute area, and which announced projects will compete for them?
- Which apprenticeship programs and colleges nearby can add seats, and how soon?
- How many permanent operating roles will remain after construction, and what training will they require?
Community
- What will the project add to the local tax base, and which incentives are being requested?
- Where will construction workers live during the build, especially in rural counties?
In zScale Intellect, a workspace brings these questions together for one region: announced projects and their hiring dates, the occupations they need, the workforce within commuting distance, the training pipeline and the tax base, with every figure labeled and sourced.
What to watch next
ERCOT’s December 10 reports will show which projects can move forward and on what terms. [4]
Which projects in your region are waiting on power, and is the workforce plan moving at the same pace?
Sushma Vadlamannati
Founder and CEO, zScale Intellect
Frequently asked questions
How much data center demand is in the ERCOT queue?
Governor Abbott’s August 3, 2026 letter described an estimated 474 gigawatts of large-load interconnection requests in ERCOT, more than five times the state’s record peak demand, with about 90% coming from data centers.
Are Texas data center approvals paused?
After the Governor’s August 3, 2026 directive, ERCOT paused approvals to energize data centers and cryptocurrency mining facilities of 75 megawatts or more pending an audit. On September 21, the Governor directed TCEQ to halt permits sought by data centers until ERCOT completes the audit. ERCOT expects to file its reports on December 10, 2026.
What does Texas Senate Bill 6 require of data centers?
Senate Bill 6, signed June 20, 2025, applies to loads of 75 megawatts or more. It requires an interconnection study fee of at least $100,000, disclosure of on-site backup generation equal to at least half of the proposed load and curtailment rules for large loads connected after December 31, 2025. The Public Utility Commission’s September 18, 2026 rule adds financial security of $50,000 per megawatt.
Is there a construction workforce shortage for data centers?
Associated Builders and Contractors estimates that the construction industry needs 349,000 net new workers in 2026 and reports that data center construction has increased demand for electricians. In Texas, TWC projects 7,798 electrician openings a year from 2022 to 2032.
Sources
Sources last reviewed November 7, 2026.
[1] Utility Dive: Texas hits pause on data centers, August 5, 2026
[2] Bracewell: Texas Senate Bill 6 overview
[4] ERCOT: Batch Zero update to the Board, September 2026
[5] Office of the Texas Governor: TCEQ directed to halt data center permits, September 21, 2026
[6] POWER: BloombergNEF estimate of audit delays, August 6, 2026
[7] EC&M: ABC construction workforce estimate for 2026, January 16, 2026
[8] Texas Workforce Investment Council: Workforce Impacts of AI, June 2026
[9] Google: $40 billion investment in Texas, November 14, 2025
Sushma Vadlamannati is the founder of zScale Intellect. She led enterprise technology programs at T-Mobile, Costco and Nordstrom and completed the Basic Economic Development Course through the Texas Economic Development Council.