ARTICLE
29 September 2026

Data Center Deep Dives: Texas

KG
K&L Gates LLP

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At K&L Gates, we foster an inclusive and collaborative environment across our fully integrated global platform that enables us to diligently combine the knowledge and expertise of our lawyers and policy professionals to create teams that provide exceptional client solutions. With offices worldwide, we represent leading global corporations in every major industry, capital markets participants, and ambitious middle-market and emerging growth companies. Our lawyers also serve public sector entities, educational institutions, philanthropic organizations, and individuals. We are leaders in legal issues related to industries critical to the economies of both the developed and developing worlds—including technology, manufacturing, financial services, healthcare, energy, and more.
Texas has become a major hub for hyperscale data center development, driven by abundant energy resources and a business-friendly environment. However, rapid growth is creating significant challenges around power availability, transmission infrastructure, water resources, and regulatory oversight. This program examines the legal, regulatory, and commercial developments shaping data center projects across Texas, providing practical insights for developers, investors, operators, and stakeholders navigating
United States Texas Energy and Natural Resources

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Ithe last decade, Texas has emerged as one of the most significant markets for hyperscale data center development in the United States. Its abundant energy resources, competitive electricity market, available land, and business-friendly environment have attracted unprecedented levels of investment. At the same time, rapid growth is creating new challenges related to power availability, transmission infrastructure, water resources, permitting, and state and local regulatory oversight, and with growing opposition, the state has experienced numerous challenges.

This Texas-focused program will examine the legal, regulatory, and commercial developments shaping data center projects across Texas and provide practical insights for developers, investors, operators, utilities, and other stakeholders navigating this rapidly evolving landscape. The program will focus on legislative efforts in light of the Governor Abbott’s August third audit request and the Texas Public Utility Commission and ERCOTs’ implementation.

 Participants will gain practical insight into:

  • Key market and policy developments driving data center growth across Texas, including challenges
  • Electric power, transmission, and ERCOT-related considerations affecting project viability and timelines
  • Emerging legislative, regulatory, and commercial trends that may influence future data center investment and operations
  • Getting ready for the 2027 Texas legislative session

This session is designed for developers, operators, investors, infrastructure providers, and public sector stakeholders seeking to better understand the opportunities and risks associated with data center development in one of the nation's most active growth markets and the impacts of regulatory uncertainty.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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