ERCOT has a waitlist of data centers looking to connect to the TX power grid by 2030. The wattage required is 410 gigawatts surpassing the current maximum capacity of 90 gigawatts. Oil and Gas Expert, Ed Hirs, says the data centers will have to step up. “Theres no way that they’ll be able to join the group, without bringing some amount of their own electricity.” He said.
The businesses will have to use generators or by funding solar farms with power purchase agreements.
Last year, state lawmakers passed a bill allowing ERCOT to charge a fee to study how much business needs. “It takes a huge investment of people time and engineering skills, so if you want to be a data center applying to Texas, put some money down.” Hirs said.
The fee will give ERCOT and state lawmakers a better idea of the total cost and resources required.
Hirs adds the drawback to the industry is the data centers don’t provide a lot of jobs. “They’re computers after all. They don’t do much in terms of job creation and production. It’s nice to have a big building nearby, but there are plenty of concerns as they use a lot of land and water resources and there are noise complaints.” He said.
As most of us enjoy the fruits of AI like Alexa at home or GPS in the car helping you get to point A to B, across the city, there is another side to the coin. Numerous data center companies are applying to various states to see which will be most cost effective. Texas lawmakers seem to be going about it the right way- analyzing numbers first.