ERCOT's Batch Zero classifications finally arrive

ERCOT checked one more box off its Batch Zero to-do list, moving projects in Texas one step closer to energization in 2027 and 2028.

Yesterday, it issued its long-anticipated provisional large-load classifications to utilities for every large load each utility submitted to Batch Zero, ERCOT’s new load study process for evaluating the hundreds of 75 MW+ projects seeking Texas grid interconnection.

(Unlike prior load studies, which evaluated projects one at a time, Batch Zero evaluates them concurrently to preserve project energization timelines while also ensuring the flood of load requests doesn’t inundate the grid’s available generating capacity.)

The notices ERCOT issued yesterday conditionally classify projects as base load, studied load, and excluded, with the following implications for each cohort:

Base load classification is the most desirable because ERCOT is basically telling projects, “You pass muster at first glance for your requested MWs, and you don’t need to compete with the studied loads to see how many MWs we ultimately grant you.”

Receiving base load classification is a big win, of course, but it doesn’t automatically guarantee the project’s allocation — these are still conditional classifications. ERCOT can yank this classification if a project fails to satisfy either the August quarterly stability assessment (for projects targeting Q1 2027 energization) or the November QSA (Q2 2027 energization), or if it fails to clear ERCOT’s verification audit per Governor Abbott’s directive.

ERCOT must report on these verification audits by December 10, 2026, and both base loads and studied loads must satisfy these audits to retain Batch Zero status.

April 9, 2027, is the final hurdle in the process, on which date ERCOT will report the Batch Zero study results and finally tell studied loads how many MWs they can receive.

Governor Abbott’s ordered audit, issued on August 3, threw a kink in ERCOT’s Batch Zero classification timeline — the grid authority was supposed to issue these classifications on August 7 but was granted an August 31 good-cause exemption, which was stretched further to September 3 — and it could still delay the study’s final April 9 results.

ERCOT has already warned that the audit could frustrate the April 9 deadline, and RTO Insider reporter Tom Kleckner told us that “pretty much everyone assumes that there's no way they can meet that deadline” on today’s show.

At any rate, an April delay shouldn’t affect base load candidates as long as they satisfy the audit and pass their QSAs, since ERCOT is telling them their loads are accounted for. A delay will affect studied load projects, however, because they won’t know how many MWs they can draw until ERCOT finalizes the study.

So far, out of the companies we track, only Hut 8 has advertised that it received its expected consideration as base load. CleanSpark, Cipher Digital, IREN, and Galaxy all have projects submitted to Batch Zero — a mix of base load and studied load eligibility — but they have been mum regarding their statuses.

That doesn’t necessarily mean bad news, though. Most likely, these companies are keeping the news close to the chest and waiting to celebrate until they have clear approval after audit verification and the QSAs.

If that’s the case, it’s might be a smart PR move, especially considering the divisive discourse boiling forth from the data center debate, which many consider the driving impetus behind Abbott’s audit order in the first place.

-CMH

Today, we cover Crusoe’s $13B deal with Jane Street as the trading firm builds out its AI cloud business for internal use. For interviews, Luxor’s Kaan Farahani joins to discuss their latest addition to Hashrate Index, the GPU Price Index, which tracks real pricing for H200 and H100 nodes, and RTO Insider journalist Tom Kleckner breaks down ERCOT’s load classification decision for Batch Zero. Finally, we close on Anthropic upping its revolving credit line to $15B in anticipation of its IPO.

Crusoe signed a five-year cloud contract with Jane Street Group valued at roughly $13 billion, Bloomberg reported Thursday, citing people familiar with the private agreement.

Crusoe will provide the trading firm with GPU clusters and supporting infrastructure through its cloud platform. The capacity will support AI training and inference workloads, though the report did not identify the GPU models, deployment schedule or infrastructure locations.

The contract has an average value of about $2.6 billion per year across its stated term, although the payment schedule was not disclosed. Read more.

Argo Blockchain (NASDAQ: ARBK) CEO Justin Nolan has departed the firm, per a filing disclosure Thursday Thursday.

Argo’s board has begun its search for a permanent successor with experience leading operations and raising capital in AI infrastructure, data centers and related sectors. Until an appointment is made, daily operations will remain under the board’s supervision with the existing management team in charge. Read more.

Per Bloomberg, Anthropic is finalizing a $15 billion revolving credit facility immediately ahead of its IPO. Morgan Stanley is leading the syndicate, followed by Goldman Sachs, JPMorgan, and Citigroup, with all four of these financial giants expected to lead Anthropic’s IPO anticipated for later this year. Read more.

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