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Texas Policy Research submitted the following written testimony to all members of the Texas House Committee on State Affairs ahead of its interim hearing.
- Committee: House Committee on State Affairs
- Hearing Date: April 23, 2026
- Context: 89th Legislature, Interim
- Subject: Implementation of Senate Bill 6 (89th Legislative Session)
- Position: Informational
- Texas Liberty Compact: End Corporate Welfare
- Submitted By: Jeramy Kitchen
- Entity: Texas Policy Research Action (TPRA)
The text below reproduces the testimony as submitted to the committee.
The submitted document linked above is the authoritative version.
Chairman King and Members of the House Committee on State Affairs,
Thank you for the opportunity to provide comments on Senate Bill 6 and its implementation.
Texas is rapidly becoming a national hub for data centers and advanced computing infrastructure. This growth is driving significant increases in electricity demand. That demand should be understood as a signal of economic strength, not a problem to be constrained.
Texas has historically responded to growth by expanding supply. That approach built one of the most competitive energy markets in the country. The question now is whether the state will continue that model or shift toward policies that treat demand as a liability rather than an opportunity.
SB 6 includes provisions that improve planning and transparency for large-load interconnections, including disclosure requirements, financial commitments, and coordination within ERCOT. These elements can help reduce speculative requests and improve system planning.
However, implementation should remain focused on preserving accurate market signals. When infrastructure costs are shifted away from the entities driving demand, it creates a distortion that can lead to inefficient investment decisions and increased costs for other ratepayers. Even well-intentioned policies can move the state toward a model where costs are socialized rather than aligned with cost causation.
The scale of expected demand from data centers and similar users will require substantial investment in generation and transmission. That investment should be driven by private capital responding to price signals, long-term contracts, and clear regulatory expectations. Policies that introduce uncertainty or rely too heavily on administrative controls risk slowing that investment and pushing it to other states.
Texas is not facing a demand problem. It is facing an infrastructure challenge. The appropriate response is to build more capacity, not to constrain growth or shift costs.
Maintaining a pro-growth, market-oriented approach will ensure Texas remains competitive for investment while preserving reliability and affordability.
Thank you for your consideration.
Sources
- SB 6 (Enrolled), 89th Texas Legislature, Regular Session (2025)
- ERCOT Update, Senate Committee on Business & Commerce, April 1, 2026
Related TPR Work
- Texas Policy Research Bill Analysis: Senate Bill 6 (SB 6)
- Texas Policy Research 'One-Pager' on Texas Data Centers: Build Supply, Don't Subsidize Demand
- Written Testimony, Data Centers and Infrastructure | House State Affairs, 4.9.2026
- Written Testimony, Microgrids and Distributed Energy | House State Affairs, 5.6.2026
- Texas' Data Center Dilemma: Growth. Grid Strain, and Water
- Texas PUC Responds to Abbott on Data Centers
- Texas Senate Lawmakers Reexamine Data Center Tax Breaks
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