Sempra Commits $7B to Expand Texas Transmission Network
Sempra has announced a $7 billion investment plan to strengthen and expand electricity transmission infrastructure in Texas between 2026 and 2034, targeting rapid demand growth within the ERCOT grid. The program will be executed through its subsidiary Oncor, which is 80.25% owned by Sempra.
The investment is designed to accommodate approximately 16 GW of new load, primarily driven by expanding data center capacity and artificial intelligence infrastructure across the state. Key upgrades will include high-voltage transmission lines, substations, and new interconnection capacity in high-growth regions of western ERCOT.
According to Morgan Stanley utilities analyst Sara Callan, “Texas combines relatively cheap energy, available land, and a predictable regulatory environment,” making it a long-term hub for large-scale industrial and digital power demand.
Oncor stated that the structure of data center contracts is reshaping utility investment risk. CFO David Goldman noted: “Data center demand represents base load with long-term contracts. This fundamentally changes the risk profile of transmission investment.”
The company plans to seek regulatory approval by the third quarter of 2026 and is expected to finance the project through a combination of long-term debt and equity issuance.
The expansion comes as ERCOT evaluates roughly 20 GW of large-load applications, reflecting sustained pressure on Texas’ power infrastructure. The development is also expected to increase demand for grid components such as transformers, high-voltage equipment, and substation technologies.
Source: inspenet.com
