Sempra-backed Oncor Unveils $7B ERCOT Grid Expansion Plan
Sempra Texas Transmission is set to undergo a major expansion as Sempra announces a US$7 billion investment plan running from 2026 to 2034, aimed at reinforcing the ERCOT grid in Texas. The program, executed through its subsidiary Oncor, targets approximately 16 GW of new load demand, largely driven by data centers and artificial intelligence infrastructure.
Oncor, which is 80.25% owned by Sempra, will deploy the investment across high-voltage lines, substations, and connection capacity in fast-growing western ERCOT regions. The initiative comes as ERCOT evaluates around 20 GW of large-load requests, with data center development representing the largest share.
According to Morgan Stanley utilities analyst Sara Callan, “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.”
The company is expected to seek regulatory approval by Q3 2026 and finance part of the project through long-term debt and equity issuance.
Oncor CFO David Goldman noted: “Data center demand represents base load with long-term contracts. This fundamentally changes the risk profile of transmission investment.”
The expansion reflects accelerating demand pressure on grid infrastructure, with implications for the transformer industry, as utilities prepare for sustained upgrades in high-voltage equipment, substations, and grid resilience following lessons from past system stress events.
Source: inspenet.com
