AUSTIN, Texas — With the heat of summer already here, there's a renewed focus on the state of the Texas power grid. The power grid operator told state lawmakers this week that explosive growth in Texas will continue to put pressure on the grid. A big concern is the impact of bitcoin mining and AI data centers with power-hungry computers being built in Texas.

What You Need To Know

  • Texas energy leaders say explosive growth in the state will put incredible pressure on the power grid in the coming years

  • ERCOT says there is a 12% chance of rolling blackouts this coming August 

  • ERCOT had predicted electricity demand would grow from 85,000 megawatts to 130,000 by 2030. Now the projection is 150,000

The power grid operator, the Electric Reliability Council of Texas, or ERCOT, says pressure on the state’s power grid is in part due to rapid growth in the state. 

“It’s a really significant growth number,” ERCOT CEO Pablo Vegas said. 

“If the supply doesn’t quite make it, you’re not going to serve that extra demand. Or if that supply starts to get very expensive, the choices about where people will consume electricity will influence their decisions about whether they locate here or not,” said Beth Garza with R Street, Energy & Environmental Policy Team. 

The grid is typically most stressed at night, when solar power is waning and usage rates go up. Due to the skyrocketing demand, ERCOT says there is a 12% chance of rolling blackouts this August. Officials are also warning that demand will increase exponentially over the next several years. 

“A 40-gigawatt increase from one year to the next in the five-year horizon. That’s effectively almost doubling the peak demand of the ERCOT grid in about six years, so it’s a really significant impact that and we really need to think about how we’re responsive to that and support the generating that needs to be developed,” said Vegas. 

ERCOT had predicted electricity demand would grow from 85,000 megawatts to 130,000 by 2030. Now the projection is 150,000. Crypto miners and artificial intelligence data centers will account for more than half of the added demand on the Texas grid. 

State senators hearing about this projected demand increase for the first time were surprised, and so was Lt. Gov. Dan Patrick, who posted, “it can’t be the wild wild west of data centers and crypto miners crashing out grid and turning the lights off.” 

Meanwhile, some Texans say it’s not fair they may have to turn their lights off in order to help prevent rolling blackouts this summer. 

“I roll my eyes and scoff and never participate because we should never be in this situation,” said Austin resident Aliza Oncken. 

The states energy agency says 125 companies have applied for grants from the Texas Energy Fund, providing funds or low-interest loans for energy-related projects of investments. The applications total $39 billion for expected grid growth.