ERCOT 'Batch Zero' framework to impact data center projects, local regulation in San Angelo
ERCOT has approved the 'Batch Zero' framework, a new system for large-load interconnection studies, which could accelerate some data center projects in Texas. In Tom Green County, this framework may favor Cipher Digital's Colchis project, which is located outside city limits and faces less opposition, potentially over the Skybox/Emergent proposal. This situation highlights the limited regulatory control San Angelo's city government would have over projects in unincorporated areas.
The Electric Reliability Council of Texas (ERCOT) Board of Directors has approved the 'Batch Zero' framework, a new system for processing large-load interconnection studies. This move is expected to accelerate certain data center projects, including those in Tom Green County, Texas, which currently has three proposals under review. The framework now awaits final approval from the Public Utility Commission of Texas.
The article highlights a potential divergence in fortunes for two major projects in the San Angelo area. Cipher Digital's 1,000 MW Colchis project is well-positioned to advance under Batch Zero, having already secured a direct-connect agreement with American Electric Power (AEP) and progressed with ERCOT studies. This project, located outside San Angelo city limits, has largely avoided public opposition, making it politically easier to advance.
In contrast, the Skybox/Emergent proposal has faced organized local opposition and infrastructure concerns, particularly regarding the capacity of the Red Creek substation. State officials have expressed doubts about the substation's ability to power multiple large data centers simultaneously, which could significantly delay or even cancel the Skybox/Emergent project.
Tom Green County Commissioners Court has adopted a cautious stance on data center regulation, partly due to a lawsuit faced by Jefferson County over similar attempts to impose stricter oversight. This reluctance, coupled with the Colchis project's location outside city limits, means San Angelo residents may experience the impacts of data center development—such as increased strain on resources and rent pressure—without the city government having direct legal authority to regulate the project or benefit from tax revenues to mitigate these effects. Opposition, led in part by Commissioner Rick Bacon's wife Glenda, remains active but faces challenges in influencing projects outside municipal jurisdiction.