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Texas Data Center
Regulatory Navigator
A guide to grid interconnection, agency processes, and the local decisions that shape a Texas data center project.
January 2026 guide with selected online updates · 16 Pages · Checklists & Decision Frameworks
Why This Guide Exists
A Texas data center project faces several decision processes at once. Grid studies, water planning, and local public meetings each need attention.
The Public Utility Commission adopted the large-load rule on September 18, 2026. It takes effect October 8.
What's Inside
Why This Guide Exists
The Texas data center regulatory landscape explained
The Texas Regulatory Stack
Federal, state, and local approval hierarchy
ERCOT Interconnection
Cost modeling, SB 6 requirements, site selection implications
Battery Storage Compliance
HB 3809 & HB 3824 checklists and timelines
Foreign Ownership Due Diligence
SB 17 & SB 2368 compliance checklist
Water Constraints
Regional availability, cooling technology decisions
Tax Incentives
State programs and local negotiation frameworks
2026 Rulemaking Calendar
Month-by-month timeline and participation guide
Local Government Strategy
Early warning indicators and engagement checklists
Advisor Evaluation Questions
What to ask your government relations team
What Makes This Different
- Actionable checklists — not just information, but what to do with it
- Cost modeling frameworks — understand interconnection economics before site selection
- Decision frameworks — cooling technology, site selection, local engagement
- Written for sharing — share with your legal, finance, and site selection teams
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Who This Guide Is For
Data Center Developers
Evaluating Texas for new builds or expansions. Understand the regulatory landscape before committing to a site.
Operators & Asset Managers
Managing existing Texas facilities. Navigate ongoing rulemaking and compliance requirements.
Site Selection Consultants
Advising clients on Texas locations. Understand how regulation affects site economics and timelines.
Finance & Legal Teams
Conducting due diligence on Texas projects. Identify regulatory risks and compliance requirements.
About JD Key Consulting
James Dickey and Blake Sbrocco help companies with Texas local government and public affairs. We listen to community concerns, build support, and make the public case alongside your team.
Tell us the location, the decision, the timing, and the concerns you have heard. State or federal assistance can be included when the issue calls for it.
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