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MARKETS · WEST TEXAS

West Texas data centers for AI campuses.

Land and power for gigawatt-scale AI campuses, under some of the most complex grid rules in the US right now. We help large deployments find sites and read the fine print.

LD Advisors · Updated October 25, 2026

MARKET SNAPSHOT · 2026

Gigawatt campuses, and a long queue behind them.

~474 GW

Large loads seeking ERCOT interconnection

1.2 GW

AI campus completed in Abilene

2 GW

Gas-powered AI campus planned near Pecos

36%

ERCOT demand met by wind and solar, first nine months of 2025

West Texas has room for the largest AI campuses, but the queue for grid connections is far larger than what can be built. Some projects add on-site gas generation to get power sooner. It suits campus-scale deployments, not a few racks.

Power, incentives and local rules

  • Under SB 6 (2025), new loads of 75 MW or more must be able to curtail in grid emergencies and disclose backup generation of 50% or more.
  • Texas regulators adopted a rule on September 18, 2026 for loads of 75 MW or more: $50,000 per MW in financial security and a $100,000 study fee.
  • ERCOT has paused energization of new loads of 75 MW or more until its large-load audit is filed, targeted for December 10, 2026. Loads of 25 to 75 MW are not paused but still need review.
  • The state environmental agency (TCEQ) paused new data center permits on September 21, 2026.
  • The Amarillo and Panhandle area is outside ERCOT, so different grid rules apply there.
  • Water: the 1.2 GW Abilene campus uses closed-loop cooling, with an initial fill of about 8 million gallons, compared with the city's use of about 22 million gallons a day (Texas Tribune, Sep 2025).

Sources: ERCOT Senate testimony (Jul 29, 2026); ERCOT (Sep 11, 2026); White & Case (Sep 2026); W.Media (Nov 18, 2025); EIA (Oct 2025); Bracewell (Jul 9, 2025); DCD (Jun 22, 2026).

Common questions

Can I get power for a large AI campus in West Texas?

Possibly, but timelines are uncertain. About 474 GW of large loads are seeking ERCOT connection, and new loads of 75 MW or more are paused until ERCOT's audit is filed.

What does SB 6 mean for a GPU deployment?

Loads of 75 MW or more must be able to curtail in grid emergencies and disclose backup generation. Plan for this in your uptime and SLA terms.

Is West Texas a good fit for smaller GPU deployments?

Usually not. Most capacity here is built for campuses. For a few racks or a few megawatts, Dallas–Fort Worth or Austin–San Antonio are better fits.

How do West Texas campuses handle water?

Large new campuses often use closed-loop cooling, which needs an initial fill but little ongoing water. We confirm the cooling design for each site.

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