ERCOT Curtailment & Grid Strategy for AI Datacenters
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.
Featured ERCOT Power & Curtailment Analyses
ERCOT curtailment risk Far West 30d
Negative-price hours and congestion percentiles for ERCOT Far West over 30d. Smoothed CSS with historical context.
ERCOT curtailment risk Far West 7d
Negative-price hours and congestion percentiles for ERCOT Far West over 7d. Smoothed CSS with historical context.
ERCOT curtailment risk Far West 90d
Negative-price hours and congestion percentiles for ERCOT Far West over 90d. Smoothed CSS with historical context.
ERCOT curtailment risk Houston 30d
Negative-price hours and congestion percentiles for ERCOT Houston over 30d. Smoothed CSS with historical context.
ERCOT curtailment risk Houston 7d
Negative-price hours and congestion percentiles for ERCOT Houston over 7d. Smoothed CSS with historical context.
ERCOT curtailment risk Houston 90d
Negative-price hours and congestion percentiles for ERCOT Houston over 90d. Smoothed CSS with historical context.
ERCOT curtailment risk North 30d
Negative-price hours and congestion percentiles for ERCOT North over 30d. Smoothed CSS with historical context.
ERCOT curtailment risk North 7d
Negative-price hours and congestion percentiles for ERCOT North over 7d. Smoothed CSS with historical context.
ERCOT curtailment risk North 90d
Negative-price hours and congestion percentiles for ERCOT North over 90d. Smoothed CSS with historical context.
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
Explore More
ERCOT Grid Intelligence Tools
CSS (Curtailment Stress Score)
Real-time grid congestion and curtailment risk by zone
Open ToolRelated Resources
GPU Lease Rates
Align compute procurement with ERCOT power pricing assumptions.
See pricing benchmarks →Site Readiness Scores
Evaluate Texas metros for interconnection queues, fiber, and power resilience.
Compare readiness →AI Infrastructure Playbooks
Access deep dives on queue strategy, power procurement, and market entry.
Browse all playbooks →