Two power companies that have sizable Texas exposure are stuck in limbo while regulators audit every project in the state's data center queue. NRG Energy Inc. (NYSE: NRG) and Vistra Corp. (NYSE: VST) could be major beneficiaries of surging demand for electricity as AI drives investment in facilities across the state. However, an Aug. 3 directive from Governor Greg Abbott has paused development of these projects on the Electric Reliability Council of Texas (ERCOT) grid, raising questions about when that demand may translate into business for these firms.
There is a lot of potential business at stake. ERCOT is weighing over 474 gigawatts of connection requests, about 90% of which are from data centers. For investors, the question is how much of NRG's and Vista's growth cases depend on Texas data center power loads arriving on schedule. Despite their similarities, the companies below have distinct positions and could perform differently depending on the outcome of the review.
