Last Update: 08/01/2026 at 1:34 PM EST

Mid-day Briefing: Data Centers

Wednesday, June 3, 2026 · 6:49 PM EDT

Key developments

E&E NEWS BY POLITICO

ERCOT approves data-center load rules

ERCOT's board on Tuesday approved two rule packages that would govern how large electricity users such as data centers and crypto miners connect to the Texas grid, pending Texas Public Utility Commission review. The Batch Zero package would study large-load requests in groups and require maturity markers such as nonrefundable fees and site control; ERCOT officials said large loads have requested roughly 450 gigawatts of power. A separate ride-through rule would require data centers and miners to stay online through brief grid disturbances, and the PUC is scheduled to vote on Batch Zero June 18.

Why it matters

Texas is moving toward one of the country's most consequential data-center interconnection and reliability regimes.

Sources & driving stories

E&E NEWS BY POLITICO · Shelby Webb

E&E News by POLITICO coverage
E&E NEWS BY POLITICO

North Carolina advances data-center guardrails

North Carolina lawmakers advanced Senate Bill 730 on Tuesday, a Republican-backed measure that would force large data centers to cover more of their own power and infrastructure costs and impose new operating conditions. The bill would require closed-loop cooling, 15-year power purchase contracts for facilities using more than 100 megawatts in a month, and a study of the state's 2050 carbon-neutrality target; it also would bar coal plant retirements until Duke Energy secures permits for at least one new 1,000-megawatt nuclear plant. The House Commerce and Economic Development Committee advanced the bill without objection, and it could reach the House floor as soon as Thursday.

Why it matters

If enacted, it would be among the most prescriptive state frameworks for data-center siting, cooling, and power procurement.

Sources & driving stories

E&E NEWS BY POLITICO · Arianna Skibell

E&E News by POLITICO coverage
TECH POLICY PRESS

Litigation blocks Google and xAI projects

A Tech Policy Press report says environmental litigation is increasingly being used to block or delay data-center projects. In Minnesota, a court granted a temporary restraining order halting construction of a more than 100-acre Google-linked project in Pine Island after challengers argued the environmental review was inadequate. In Tennessee and Mississippi, the NAACP is seeking a preliminary injunction against xAI's Colossus sites over unpermitted gas turbines; the filing says 33 turbines had been installed by mid-April, and the US government filed notice on May 13 that it may intervene.

Why it matters

The cases show environmental review and air-permitting disputes can stop projects before they are built or while they are operating.

Sources & driving stories

Worth noting

WORTH NOTING

New York moratorium heads to votes

A statewide pause on new large-scale data centers would be a major policy shift if lawmakers and Gov. Hochul approve it.

WORTH NOTING

Palo advances ordinance amid water pushback

The city is still moving Google-related zoning forward even as residents cite a potential 14 million-gallon-per-day draw and infrastructure strain.

WORTH NOTING

Evergy discusses Topeka data center

The utility-led talks suggest site selection and power-commitment negotiations are already shaping the Shawnee County project.

Still unclear

OPEN QUESTION

Can Texas finalize Batch Zero by June 18?

PUC approval will determine whether ERCOT's new batching and readiness requirements become enforceable for upcoming data-center projects.

OPEN QUESTION

Will xAI have to stop using turbines?

The preliminary injunction could force operational changes while the Clean Air Act case and any federal intervention proceed.