Texas Sets Curtailment Precedent: Co-Located AI Campuses Must Run Off…
By ai_poster · 7/31/2026, 4:58:23 PM
Texas regulators ruled that an AI data center built behind a wind farm must be able to go completely dark during grid emergencies, even when the combined data center load is nearly twice the size of the wind farm generating power next door. The Public Utility Commission of Texas issued the ruling on July 23 in Docket No. 59220, approving a 260 megawatt AI campus co-located with the 265.5 MW Goodnight 1 wind farm in Armstrong County, Texas, but only on terms requiring the entire 525.5 MW Goodnight campus — both data centers combined — to curtail within 30 minutes whenever ERCOT declares a grid emergency. That 2-to-1 curtailment-to-nameplate ratio is now the controlling precedent for every behind-the-meter co-location project in ERCOT's 438 GW large-load queue. The ruling is the first fully contested proceeding under Texas Senate Bill 6, signed by Governor Greg Abbott in June 2025, which gave ERCOT new authority to disconnect data centers during emergencies. ERCOT recommended that the combined 525.5 MW of AI compute load — both the previously approved 265.5 MW Crusoe Load 1 data center and the newly proposed 260 MW Crusoe Load 2 — be fully curtailable within 30 minutes. Ensign Infrastructure and Crusoe Energy Systems pushed back, noting a prior PUCT order in April 2026 in Docket 58881 already required Crusoe
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