In the Americas, Data Center Growth Now Starts with a Power Plan
North America's September news shows regulators and financiers focusing on one question: where the power will come from, and who will pay for it.
Texas puts the queue under review.
On 3 August, Governor Greg Abbott directed regulators to audit data center projects seeking grid access. ERCOT paused its Batch Zero process and the energisation of new large-load Data Centers. About 300 projects of 75MW or more are in scope, and ERCOT will also run community impact reviews for sites of 25MW and above. The wider queue stands at roughly 474GW, about 90% of its Data Centers and more than five times the record peak demand. Experts expect a substantial share to be speculative or duplicated. ERCOT intends to file its reports by 10 December. The Governor has also directed the state environmental agency to pause Data Center permits until the audit concludes.
California moves on cost allocation and disclosure.
On 21 September, Governor Gavin Newsom signed seven bills. Several direct regulators to set separate tariffs for large Data Center loads so that residential ratepayers do not carry the cost of new generation and grid upgrades. Others require water-use disclosure before approval and remove Data Centers' eligibility for blanket environmental review exemptions, while offering fast-track approval to facilities that meet state energy and water standards.
Nuclear restart gains financing.
On 8 September, the US Department of Energy closed a loan of up to $1.9bn to NextEra Energy for the 615MW Duane Arnold restart in Iowa. Google has a 25-year power purchase agreement for the output. NextEra targets restart no later than the first quarter of 2029, subject to Nuclear Regulatory Commission approvals. The project is expected to support thousands of construction and refurbishment jobs and more than 400 permanent roles. DOE says its loan programme has now financed three nuclear plant restarts.
What this means for talent.
Projects that can evidence a power plan will clear review fastest. Demand is rising for interconnection and transmission engineers, nuclear licensing and operations specialists, tariff and regulatory analysts, and environmental permitting leads. We advise clients to align workforce plans with approval milestones, using permanent hires for long programmes and contract specialists to flex capacity at peaks.
Planning a project in the Americas? Speak to our Critical Infrastructure team.
Sources: ERCOT; Utility Dive; Houston Public Media; Data Center Dynamics; Governor of California; Mayer Brown; US Department of Energy; NextEra Energy; Utility Dive.
