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Key developments
Texas nears batch reviews for data center loads
The Texas Tribune reported that the Public Utility Commission of Texas is set to consider ERCOT’s proposal to review large-load grid-connection requests, including data centers, in batches rather than one by one. ERCOT has already voted to proceed with “Batch Zero” after receiving 225 new interconnection requests in 2025, about 70% tied to data centers. ERCOT’s preliminary forecast shows peak load reaching 367,790 MW in 2032, compared with the state record of 85,508 MW in August 2023.
Why it matters
Texas is testing a new interconnection model as AI and data center demand threatens to overwhelm grid planning and cost-allocation processes.
Sources & driving stories
THE TEXAS TRIBUNE
The Texas Tribune coverageVirginia Senate pivots to data center generator tax
Virginia Mercury’s Shannon Heckt reported that Senate leaders released a budget proposal preserving the data center sales and use tax exemption while adding a tiered tax on permitted backup-generator capacity. The proposal would tax Tier 1 and Tier 2 generators at $45 per permitted kWe, certain retrofitted, Tier 3, and natural-gas units at $37, and Tier 4 or other generators at $35, with quarterly collection by the Department of Taxation. Cardinal News reported the Senate shifted away from ending exemptions early and estimated the new impact fee could raise about $1.7 billion over the biennium, while negotiations continue ahead of a June 30 funding deadline.
Why it matters
Virginia is the country’s most important data center market, and this proposal would preserve existing incentives while creating a major new operating-cost exposure tied to backup power infrastructure.
Sources & driving stories
VIRGINIA MERCURY · Shannon Heckt
Virginia Mercury coverageCARDINAL NEWS
Cardinal News coverageCities add moratoriums and bans amid backlash
Savannah Morning News reported that Garden City, Georgia, unanimously approved a six-month moratorium pausing new data center applications and permits while staff review local rules. WRAL’s Grace Holland reported Holly Springs, North Carolina, approved a one-year pause on data center development, following similar pauses in Wake, Chatham, Orange, and Durham. Western Massachusetts News reported Holyoke’s City Council voted Tuesday night to ban data centers in every zoning district after opposition to a proposed $200 million Water Street project.
Why it matters
Local land-use resistance is becoming a direct constraint on data center siting, adding permitting risk beyond power and water availability.
Sources & driving stories
SAVANNAH MORNING NEWS
Savannah Morning News coverageWRAL · Grace Holland
WRAL coverageWESTERN MASSACHUSETTS NEWS
Western Massachusetts News coverageWorth noting
WORTH NOTING
Hyperscaler financing strain flagged
247WallSt’s Joel South, citing Epoch AI and company disclosures, argued that AI builders’ capex is outpacing operating cash flow and highlighted Oracle’s negative fiscal 2026 free cash flow, Microsoft’s off-balance-sheet infrastructure vehicle, and rising lease obligations.
WORTH NOTING
Seattle sees sub-threshold proposal
The Seattle Times reported that Starbucks Center owners submitted a conceptual plan for a 45,600-square-foot data center designed to remain below Seattle’s moratorium threshold for large facilities above 20 megavolt-amperes.
WORTH NOTING
Onsite power remains central
Nasdaq reported Zacks’ focus on Bloom Energy’s role in behind-the-meter power for AI data centers, including a $5 billion Brookfield partnership and a $2.65 billion American Electric Power fuel-cell deal in Wyoming.
Still unclear
OPEN QUESTION
Will batch reviews filter speculative load?
ERCOT’s forecast depends heavily on large-load projects, and the new process is explicitly intended to distinguish financed, site-secured data centers from requests unlikely to be built.
OPEN QUESTION
Can Virginia’s generator tax survive negotiations?
The Senate proposal faces industry and labor opposition, no final budget agreement exists, and the state faces a June 30 deadline.