ERCOT Curtailment & Grid Strategy for AI Datacenters

AI Summary • 12 Data Sources Verified

What is the ERCOT interconnection queue status for datacenters?

ERCOT's interconnection queue has reached 205 GW of pending projects, with datacenter and crypto applications representing ~40% of new requests.

Key Data Points

  • Wait times of 4-5 years for new large loads (>50MW)
  • Phantom load acquisition used as mitigation strategy
  • Behind-the-meter (BTM) generation increasing in popularity
  • 2025 peak capacity is ~85 GW (queue is 2.4x current capacity)

Texas offers unmatched power scale for AI infrastructure, but ERCOT's energy-only market requires disciplined curtailment planning. Use this hub to align power procurement, demand response, and hedging strategies with your datacenter financing model.

Interconnection Queue

18-30mo

Typical ERCOT timing

Curtailment Windows

35-55

Peak events / year

Demand Response

$85/MWh

Average credit value

Renewable Mix

34%

Wind & solar share

Navigating ERCOT's Operating Landscape

ERCOT's deregulated market rewards agile load management. Datacenter operators can leverage load flexibility, hedging instruments, and grid services participation to offset price spikes and curtailment events. Financing structures increasingly require transparent mitigation plans to satisfy lenders and tax equity partners.

Energy-only pricing, real-time volatility, and local transmission congestion create unique underwriting requirements. Aligning power purchase agreements, nodal price forecasts, and uptime commitments is critical for operational continuity and debt coverage ratios.

Capital partners expect detailed curtailment playbooks that blend onsite storage, flexible workload scheduling, and demand response participation. The resources below provide benchmarks and programmatic insights for every stage of ERCOT deployment.

Curtailment Mitigation Scenario

Baseline Exposure

  • • 100MW AI load, no hedge
  • • 120 annual curtailment hours
  • • $1.8M revenue-at-risk
  • • 92% availability

Demand Response Plan

  • • 30MW responsive tranche
  • • ERCOT ECRS participation
  • • $2.1M annual credits
  • • 96% availability

Hedged Portfolio

  • • 70% heat rate swap coverage
  • • 10MW battery buffer
  • • $3.5M downside protection
  • • 98% availability

Texas Grid & Power Intelligence

ERCOT Grid Intelligence Tools

FREE TOOL

TTPS (Time-to-Power Score)

Interconnection queue wait time analysis

Open Free Tool
FREE TOOL

CSS (Curtailment Stress Score)

Real-time grid congestion and curtailment risk by zone

Open Free Tool
PRO TOOL

PAY (Power-Adjusted Yield)

Site-level investment attractiveness scoring

Try Pro Tool
PRO TOOL

ERCOT Curtailment Details

Detailed ERCOT curtailment events and forecasts

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