Texas audit may delay data center grid connections

Troutman Pepper Locke’s energy team highlighted potential legal and regulatory impacts from Texas’ pause on data center grid connections.

• In an Aug. 4 client alert, John K. Arnold, Brandon Lobb, and Rachael Beavers advised investors and developers to review contract exposure tied to data center development schedules, especially change in law, force majeure, milestone extension rights, and termination triggers.
• The firm said the January 2027 convening of the 90th Texas Legislature could be the next chance for statutory changes, and noted the PUCT is seeking expanded statutory authority over the data center industry.