Power for AI: Grid Queues, Nuclear PPAs, Gas Turbines — 2026-09-22

Top developments

Texas Gov. Abbott suspends new data-center interconnection requests

On September 21, Texas Governor Greg Abbott ordered the Public Utility Commission of Texas and ERCOT to audit all data centers currently in ERCOT's interconnection queue, halting new grid-interconnection applications for data centers statewide. The move makes Texas the most aggressive state on large-load gatekeeping and could redirect hyperscaler siting toward PJM and other regions — or push developers toward behind-the-meter generation.

Mitsubishi Heavy sees 2026 gas-turbine demand running above 2025

Mitsubishi Heavy Industries' US president told Nikkei that global demand for power-generation gas turbines in 2026 is expected to be at or above 2025's record levels, driven by sustained AI-related electricity demand. Kawasaki Heavy's chairman separately said gas-turbine inquiries are "active," with data-center demand particularly strong. Backlog lengths at Japanese OEMs remain a structural constraint on new gas supply for data centers.

Siemens Energy adds four turbines with YTL Power and Ganda Power

Siemens Energy agreed to supply four additional gas turbines to YTL Power and Ganda Power; the seven machines across the deals are expected to deliver over 5,250 MW. German financial press sees the AI data-center power hunger as the driver, with the stock's order intake a record €17.9 billion and a €162 billion backlog reported in recent quarters.

Wall Street turns cautious on data-center IPOs

The New York Times reported (September 21) that several companies tied to the data-center industry have delayed IPOs amid public backlash over energy use. In parallel, the US House passed a bill to shield consumers from bearing data-center-driven grid costs, which Motley Fool notes gives data-center companies an incentive to source their own power — a positive signal for behind-the-meter and nuclear PPA structures.

PJM capacity priced at ceiling for third straight auction

PJM capacity prices hit the ceiling for the third consecutive auction, and utilities racing to serve hyperscaler demand are pursuing different strategies and risk profiles, per 24/7 Wall St.'s September 17 analysis. Cost-shifting concerns from data centers to other customers continue to pressure state regulators to create new tariff structures.

Local view

• Germany: Finanztrends called Siemens Energy's latest YTL/Ganda turbine agreement a "Paukenschlag" (thunderclap), highlighting seven plants totaling over 5,250 MW.
• Japan: Nikkei's interview with Mitsubishi Heavy's US president emphasized that high power demand from AI "will continue for the time being."
• US: Daily Caller and local coverage have flagged blackout risks tied to data-center load in Pennsylvania; utilities' rate-increase requests totaled $18.6 billion in the first half of 2026.

Context & numbers

• BloombergNEF (Sept 14) revised its projection: US data centers to consume 15 billion cubic feet of natural gas per day for generation by 2035 — more than double its December 2025 estimate of 6.9 bcf/d.
• IEA expects AI data-center energy demand in 2030 to exceed Japan's current total energy demand.
• Residential electricity rates are up 7.3% nationally year-over-year; 2025's record $29 billion in utility rate-increase requests is already more than half eclipsed in 2026.
• Nuclear restart PPAs are priced around $70–95/MWh (LCOE), with Microsoft/Constellation's Three Mile Island deal reported at $110–115/MWh — reference figures only, from search snippets.

On the radar

• ERCOT's mandated audit of all queued data centers (ordered Sept 21) — watch for queue purges and revised large-load forecasts.
• FERC show-cause dockets EL26-67 through EL26-72 on large-load tariffs at all six regional grid operators — no decision deadline announced.
• Siemens Energy's $75-upside case per Morgan Stanley price targets cited in German press.
• Rumor watch: data-center IPOs could reprice or slip further if consumer backlash over power costs intensifies (reported IPO delays, unconfirmed timing).