Sempra Texas electricity transmission will receive an investment exceeding US$7 billion between 2026 and 2034 to support approximately 16 GW of new connected demand, primarily linked to data centers and artificial intelligence. The plan will be executed through Oncor, a subsidiary in which Sempra holds an 80.25% stake, and represents the largest utility investment in Texas in a decade.
Sempra Texas Transmission: US$7 Billion for New Demand
The capital investment covers high-voltage lines, transformer substations, and connection capacity in the western node of the ERCOT grid, where most approved data center projects for the next five years are concentrated. Sempra Texas Transmission seeks regulatory approval before the third quarter of 2026.
Oncor operates 139,000 miles of lines in Texas, with a service area in the Dallas–Fort Worth Metroplex and the I-35 corridor, two of the country’s fastest-growing markets for technological and industrial demand.
ERCOT Evaluates 20 GW of Large Load Projects
ERCOT is evaluating large load projects—defined as consumers of more than 75 MW—totaling 20 GW of active applications. Approximately 12 GW correspond to data centers and cloud computing, and 8 GW to advanced manufacturing and hydrogen.
Texas combines relatively cheap energy, available land, and a predictable regulatory environment. Sempra Texas Transmission is a bet that this trend will last for decades.
noted Morgan Stanley utilities analyst Sara Callan in a memo published on June 9, 2026.
The planned Sempra Texas Transmission must coordinate with ERCOT the staggered incorporation of new load nodes to avoid grid strain during summer peaks, which in Texas are concentrated between June and September.
Oncor as the Vehicle for Investment Plan Execution
Oncor, with Sempra holding an 80.25% stake, will request an accelerated investment recovery mechanism from the Public Utility Commission of Texas, similar to the one applied during wind expansion in the Panhandle. Funding will combine long-term debt—green and sustainability-linked bonds—with additional equity from Sempra.
The parent company plans to issue up to US$2.5 billion in debt instruments during 2026 to finance the first tranche of the Sempra Texas Transmission plan, backed by 15- to 20-year supply contracts signed with data center operators.
Data center demand represents base load with long-term contracts. This fundamentally changes the risk profile of transmission investment.
stated Oncor CFO David Goldman in a conference call with analysts on Tuesday.
Systemic Risk and Lessons from the 2021 Blackout
The expansion of Sempra Texas Transmission occurs under the shadow of the February 2021 blackout, which left over 4 million homes without electricity and caused losses exceeding US$200 billion. ERCOT requires climate resilience protocols in all new transmission projects.
US LNG flows at 2026 lows show how natural gas, which fuels much of ERCOT’s base generation, faces its own pressures, making the electrical diversification supported by the Sempra Texas Transmission plan even more urgent.
The offshore strike in the North Sea reminds us that critical energy infrastructure can become a vector of systemic instability without sustained investment and long-term planning. Oncor’s program is precisely the commitment to fortify the Texas grid against the exponential demand brought by data centers.
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