USA, Texas: Natural gas projects have moved ahead of wind power in Texas’ grid interconnection queue for the first time in nearly a decade, highlighting how rapidly growing data centre demand is reshaping the state’s electricity market.
According to ERCOT data, gas generation projects have exceeded wind projects in the queue for the past six months. The shift comes after years in which wind energy dominated new generation plans in Texas.
The change is being largely driven by the rapid expansion of data centres linked to the artificial intelligence boom. Many developers are seeking around-the-clock electricity supply, making gas-fired generation more attractive because of its ability to provide stable and dispatchable power.
Gas projects in the queue have increased sharply over the last three years, rising from 12,500 MW in March 2023 to almost 64,000 MW last month. Wind projects also grew during the same period, but at a much slower pace.
Solar and battery storage still make up the majority of projects waiting to connect to the grid, accounting for roughly 75 % of the total queue volume.
ERCOT officials say the market is beginning to place greater value on reliability and dispatchable generation. At the same time, wind developers are facing increasing challenges, including transmission congestion, fewer prime development locations, and policy uncertainty affecting investor confidence.
The growing number of gas plants and large-scale data centres is expected to drive further investment in substations, switchgear, transformers, and transmission infrastructure across Texas.
Source: The Texas Tribune
