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Texas Data Center Expansion Could Trigger Winter Blackouts: Grid Risk Explained

johny899

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Texas is rapidly growing as a focal point for enormous data centers. Companies such as OpenAI are establishing large campuses, like the Stargate campus located outside of Abilene. These data centers run day and night, which puts pressure on Texas' electricity grid, especially during cold weather or freezing temperatures.

Why Winter is Risky​

Do you recall Winter Storm Uri in 2021? Millions of people were without power, and more than 200 people lost their lives due to the cold, carbon monoxide poisoning, and other medical problems. It occurred because the amount of electricity drawn by heating increased while many natural gas plants failed.

Imagine having hundreds more data centers. That represents even further electricity use and blackouts could be more likely during extreme cold.

Big Data Center Boom​

Texas has received over 220 gigawatts worth of requests to connect to the grid, a substantial increase from earlier in the year. Approximately 73% of those requests are data centers. To put that in perspective, if all were built they would use enough power for 154 million homes, and in the U.S., Texas only has 30 million people.

Not, however, all these projects will get approved. Many of them are just plans or ideas reached by developers, and over half of the plans haven’t even completed planning studies. The approved plans also do not represent the claimed 7.5 gigawatts that the projects will add to the generation mix, but these are still significant additions to the use of electric grid.

Challenges for the Grid​

As there are data centers using electricity 24/7, it will be difficult to keep backup batteries charged during lengthy storms. Extreme cold puts more constraints on natural gas supplies and could make running plants more difficult. NERC provided multiple justifications for its recommendation that blackouts could occur if demand went higher than supply.

What Experts Say​

Beth Garza, a former ERCOT official stated "these numbers are crazy big" but also said never-the-less sufficient demand will lead to more investment in new plants. John Moura's comments referred to the potential for flexibility if data centers are able to configure when to use electricity.