SB 6 Implementation Shaping Data Center Future in Texas

Texas’ SB 6, signed earlier this year, establishes a statutory framework for managing the growth of large loads in the state. 

While the law took effect immediately, the Public Utility Commission of Texas (PUCT) was tasked with implementing the statute’s directives into regulations. Following the implementation roadmap published by PUCT staff in August, the PUCT is now carrying out SB 6 through multiple active dockets related to interconnection standards, net‑metering, forecasting criteria, large‑load reliability/demand reduction, and transmission cost‑allocation review. The rulemaking projects are on various timelines, with final adoptions planned throughout 2026.

The following are a few highlights of SB 6 and its implementation that are relevant for large-scale AI and high-performance computing campuses:

• Large-load interconnection rules are coming into focus. The PUCT’s ongoing projects cover interconnection standards, site-control requirements, study fees, and emergency curtailment obligations for large loads. While they are not finalized yet, developers are already planning around these standards now.
• Remote curtailment is no longer theoretical. Utilities (via the Electric Reliability Council of Texas (ERCOT)) will have authority to order emergency load reductions or disconnections for large loads during grid stress events. In response, we’re seeing real projects incorporate redundant power architectures, software-driven load management, and on-site generation/battery strategies to maintain operations or enable graceful degradation during curtailment events.
• This looks like a broader regulatory trend, not just a Texas issue. The state’s approach sits within a broader national pattern: grid operators and commissions—most visibly the Southwest Power Pool with its fast‑track pathways for high‑impact large loads—are building dedicated processes to study and integrate very large, concentrated demand while preserving reliability. Expect more states to adopt Texas‑style frameworks that blend standardized interconnection criteria, curtailment‑ready operations, and transparent forecasting.

Implementation Roadmap for PUCT Projects

Texas is implementing SB 6 through five PUCT projects that create a framework for future approvals, forecasting, and allocation. See below for a summary of each project and its implementation timeline. 

• Large‑load interconnection standards (Project 58481). The foundational rulemaking will establish the interconnection procedures and cost obligations for large loads. The project will confirm the current cutoff of 75 MW and finalize the required study fees, site control proof, disclosure requirements, and backup generation mandate. The scoping has started, and stakeholder comments are currently being filed; the proposal for publication is expected in early 2026, with the final rule published by mid‑2026.
• Net-metering arrangements for co‑location (Project 58479). The draft rule requires PUCT approval of net‑metering arrangements between new ≥ 75 MW large‑load customers and existing stand‑alone generators. It authorizes the commission to condition approvals (e.g., callable dispatchable capacity and behind‑the‑meter curtailment) and to require hold‑harmless proceedings, so stranded‑asset costs are removed from rates. The draft rule was published in Fall 2025, and public comments have been submitted. Rule adoption is targeted for early 2026.
• Large‑load forecasting (Project 58480). The discussion draft sets ERCOT large‑load forecasting criteria by defining a “large load customer” (≥ 10 MW at a single site), specifying the documentation and milestones required for inclusion, and outlining how submitted information affects ERCOT’s transmission planning and resource‑adequacy forecasts. The draft rule was published in Fall 2025, and public comments have been submitted. Rule adoption is targeted for early 2026.
• Large‑load reliability/demand reductions (Project 58482). The rulemaking will create the voluntary demand reduction program for large loads required by SB 6. Scoping is expected to start in January 2026, with adoption later in the year.
• Transmission cost allocation study (4CP) (Project 58484). The analysis project (not an immediate rule) studies whether the current method of sharing transmission costs should be changed given the influx of large loads. The commission has released questions for stakeholders and received comments, with related rulemaking expected by the end of 2026.