As summer heats up, Texans are once again starting to feel constraints in the state’s energy supply. The Electric Reliability Council of Texas (ERCOT) has issued warnings of potential rolling blackouts, with a 12% chance predicted for August. The state’s energy supply is under immense pressure due to the increasing demand for electricity, exacerbated by the rapid growth of data centers.

Surging Demand Due to Data Centers
Demand for energy in Texas is increasing at unprecedented rates. Texas’ unregulated grid and historically cheap energy have attracted numerous data centers, particularly those supporting artificial intelligence (AI) and cryptocurrency mining. These data centers are sprouting up across the state, consuming massive amounts of energy. ERCOT’s CEO, Pablo Vegas, highlighted that the growth of these centers is explosive, though the exact number is still to be determined.

Energy-Intensive AI Technology
The energy requirements for AI operations are staggering; it can take between 10 and 30 times the power needed for a traditional Google search to perform an AI-enhanced search. This surge in demand is putting a significant strain on the already burdened Texas power grid. The rapid expansion of AI technologies and the resulting energy consumption underscore the challenges Texas faces in managing its energy resources.

Efforts to Strengthen the Grid
Texas has been trying to strengthen its grid for years, especially after the catastrophic winter freeze in 2021 that left millions without power. Efforts to subsidize new power plants and improve transmission lines have been ongoing, but these initiatives take years to come to fruition. In stark contrast, data centers, which can consume as much energy as small cities, can be built in just a few months. This rapid increase in energy-consuming infrastructure poses a severe challenge to grid stability and reliability.

Legislative Concerns Over Data Centers
The increase in energy usage is beginning to have a noticeable impact, prompting legislators to question the long-term benefits of these energy-intensive businesses. Even Texas’ Republican lieutenant governor, Dan Patrick, has expressed concerns about whether the jobs and economic benefits brought by data centers justify their high energy demands. This is a significant shift from Texas’ traditional stance of being open for business, reflecting growing concerns about the sustainability of current energy practices.

Rising Energy Costs
As a result of demand increasing much faster than supply, energy costs in Texas are certain to continue rising as they have over the past few years. ERCOT has also noted that demand can spike dramatically, with prices following suit, particularly during peak periods. For instance, in September, Texas power prices surged as much as 20,000%. This volatility underscores the urgent need for a more stable and sustainable energy solution.

Benefits of Going Solar
In order to shield yourself from these price spikes and potential blackouts, consider going solar. As more people move to Texas and more data centers are added, demand will simply continue to increase. By going solar, you protect yourself while benefiting your entire community by reducing strain on the grid and creating new decentralized and distributed energy sources. Solar energy offers a viable solution to mitigate the pressure on the grid, providing a sustainable and cost-effective alternative to traditional energy sources.

Make the Smart Choice with NATiVE Solar
Make the smart choice by going solar with NATiVE. Since 2007, our business has been serving residents looking for an alternative to Texas’ aging grid. Moreover, our experts work hard to ensure our clients’ energy needs are met without compromise, all while saving them the most amount of money possible. By choosing solar, you not only protect yourself from volatile energy prices and potential blackouts but also contribute to a more resilient and sustainable energy future for Texas. #TakeYourPowerBack with NATiVE Solar