(TNS) — Just how many data centers can Texas hold? Meta is getting in on the act with two facilities valued at more than $2.3 billion. Another technology company is looking to build a 50,000-acre artificial intelligence hub called Data City.
All of this growth means the energy demand should be surging, and to that point, a recent analysis shows Texas is expected to power up like no other part of the U.S. over the next few years.
The U.S. Energy Information Administration (EIA) on Thursday noted that U.S. energy demand was set to grow by about 4-5 percent over the next two years. But a substantial chunk of that growth would be focused on the grid operated by the Electric Reliability Council of Texas (ERCOT). In other words, the ERCOT grid is getting heavier.
"After relatively little change in U.S. electricity demand between 2005 and 2020, retail sales of electricity have begun growing again, driven by rising demand in the commercial and industrial sectors," wrote the EIA on Thursday. "Developers have proposed numerous data centers and large manufacturing facilities that could consume significant amounts of electricity, and many of these projects are concentrated in the ERCOT and PJM regions."
The ERCOT region covers much of Texas and is famously isolated from other U.S. power grids. The PJM region refers to an area covering Maryland, New Jersey, Ohio, Pennsylvania and Virginia, along with other areas of the mid-Atlantic and Appalachian regions, which is part of the larger Eastern Interconnection grid.
The EIA expects electricity demand on the ERCOT grid to increase by an average rate of 11 percent between this year and 2026, as opposed to 4 percent in the PJM region. Much of the wild growth in Texas will come from "large data centers and cryptocurrency mining facilities" beginning operations, particularly in 2026, according to the EIA.
A number of crypto mines have popped up over the last several years, and opponents claim these facilities soak up so much power that it strains the power grid. In late 2024, the Public Utility Commission of Texas (PUCT) adopted a rule requiring virtual currency mining facilities in the ERCOT region to register their locations, ownership information and demands for electricity.
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Texas Energy Demand Expected to Grow at Average of 11 Percent Through 2026
What to Know:
- The U.S. Energy Information Administration on Thursday noted that U.S. energy demand was set to grow by about 4-5 percent in the next two years.
- The EIA expects electricity demand on the ERCOT grid to increase by an average rate of 11 percent between this year and 2026.
- A number of crypto mines have popped up in the last several years, and opponents claim these facilities soak up so much power that it strains the power grid.
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