An important development occurred late last week at ERCOT that affects Texas data center projects. We want to bring this development to your attention quickly.

On Thursday, September 3, 2026, ERCOT issued conditional classifications for Large Load (≥75 MW) interconnections to be included in Batch Zero, marking a critical phase in the current process for managing large-scale electricity demand in the ERCOT region. ERCOT notified utilities regarding whether a submitted project qualifies as Base Load, Studied/Allocated Load, or is excluded from Batch Zero. These classifications have significant implications for the Large Loads’ interconnection queue position, MW allocation, financial security obligations, and the timing of available capacity. Projects that were reclassified and wish to dispute the classification, have tight three-business-day deadlines from notification and may have additional requirements in a new pathway.

Baker Botts advises affected Large Loads to promptly confirm their classifications, understand the specific eligibility pathway that applies, preserve applicable dispute rights, gather any additional materials required for maintaining a position in Batch Zero, and prepare for ongoing verification requirements. Baker Botts will continue to monitor ERCOT’s actions and advise clients with projects submitted in the Batch Zero process.

Please reach out to us directly if you need assistance.

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