Phantom data center power demand fuels concerns over inflated Texas backlog
CNBC reports that data center power demand estimates may be inflated because developers reserve grid capacity at multiple potential sites for the same project, creating so-called phantom load. The issue is especially pronounced in Texas, where a large data center application queue contributed to Governor Greg Abbott pausing new applications.
CNBC correspondent Pippa Stevens examined how so-called phantom load may be overstating projected data center electricity demand. Developers sometimes seek grid access for multiple possible locations before deciding where to build, causing utilities and policymakers to count the same project more than once. Wood Mackenzie data cited by CNBC estimates that only 302 gigawatts of a 1,040-gigawatt nationwide data center backlog is actually committed.
Texas has the largest example, with a 474-gigawatt queue in which data centers account for about 90% of requested capacity—more than five times the state’s historical system peak. The inflated figures have contributed to public opposition and prompted Governor Greg Abbott to pause new applications. Vistra CEO Jim Burke said communities react differently to one proposed data center than to expectations that many facilities are coming, while AK Capital Consulting’s Neil Calton said phantom load has harmed the industry’s optics and practical planning.