The Texas energy grid will get some major upgrades in West Texas to better ready the grid for data centers and oil and natural gas development after the approval of a U.S. Department of Energy loan.

The DOE approved a loan up to $3. 26 billion to AEP Texas that will fund around 100 projects across the state.

Projects will include rebuilding existing energy transmission lines and the building of new lines spanning approximately 2,800 miles.