Texas Senate Bill 6: Data Centers Generator Fuel Plan Becomes Even More Critical

A major shift is underway in Texas, where data centers now face new regulatory obligations under Texas Senate Bill 6 (SB6),signed into law in late June 2025. While the bill specifically targets large electricity users, such as hyperscale data centers and crypto mining operations, the broader implications extend across the data infrastructure industry, both in Texas and nationwide.

SB6 authorizes the Electric Reliability Council of Texas (ERCOT)to manage high-usage customers during grid emergencies. This includes the authority to mandate backup power deployment, enforce load curtailment, or even remotely disconnect qualifying customers during periods of stress on the grid. These rules apply to operations drawing 75 MW or more, though the Public Utility Commission of Texas (PUC)may adjust this threshold in the future.

In addition to operational requirements, SB6 imposes several costs and disclosure mandates:

• Infrastructure Cost Sharing: Data centers must now cover the full costs of connecting to the grid, including transmission, distribution, and study costs, ensuring these expenses are not passed along to residential ratepayers.
• Backup Power Requirements: Operators must disclose backup generation capacity sufficient to supply at least 50% of site demand. ERCOT can require this capacity to be used during emergencies.
• Remote Disconnect Capabilities: Any site coming online after December 31, 2025, must include systems enabling ERCOT to remotely disconnect the facility during load-shedding events.
• Queue Management and Transparency: To combat speculative load applications, developers must disclose similar load submissions inside or outside the state. Transmission screening applications require site control documentation, financial commitment, and a minimum $100,000 fee, designed to reduce "phantom load" congestion.
• Behind-the-Meter Oversight: On-site generation arrangements must be disclosed to ERCOT. The PUC has 180 days to review these applications, after which they default to approved status unless explicitly denied or modified.

The bill aims to ensure the costs and risks of rapid load growth don't fall on everyday Texans, while maintaining Texas's pro-growth business environment. It's also a clear signal to other states watching closely as AI and cloud computing dramatically increase demand for energy infrastructure.

A National Trend Taking Shape

Texas is not alone in rethinking how states manage the energy demands of large infrastructure users. Similar initiatives are underway across California, Georgia, Ohio, South Carolina, and other states. While no two regulatory regimes are exactly alike, a few consistent trends are emerging:

• High-volume users are increasingly being asked to bear the full cost of grid connection.
• Energy reporting and transparency mandates are becoming standard.
• Special tariffs and billing structures are being tailored for data centers, sometimes linked to emissions, water use, or long-term contract obligations.
• States are balancing economic incentives with structural guardrails, demanding more from the companies they attract.

How Mansfield Can Help

For large-scale power users navigating these evolving rules, this adds a scenario for emergency response planning. Mansfieldhelps data centers stay prepared, not just in the face of natural disasters or fuel supply interruptions, but also in the face of regulatory actions.

Mansfield supports large energy users with:

• Reliable backup fuel supply for on-site generators, ensuring continuous operations even during restriction events.
• Turnkey fueling solutions, including generator refueling, mobile fueling, and remote tank monitoring to ensure compliance with backup generation mandates.
• New data center construction fueling, including competitive diesel fuel and renewable diesel.

A Strategic Moment for Industry Leaders

As regulators tighten, proactive readiness can become a competitive edge. Mansfield Energy is already working with high-usage customers in Texas and across the U.S. to ensure operational continuity.

Data centers looking to build or expand in Texas - or anywhere else - should consider this a good moment to assess their energy strategies, backup readiness, and reliable supplier partnerships. SB6 may be the first of many similar laws to come, and those who prepare now will be better positioned to lead in a more complex, highly regulated energy environment.

Need support with backup fuel solutions? Call us today!