How much energy does AI use, and why does it need so many data centers?
The article explains how rapidly expanding AI workloads are driving much higher electricity demand from data centers across Texas. It highlights major projects in the Dallas area, Reeves County, El Paso and near Amarillo, while experts warn that data center power needs and rapid load fluctuations could strain the state’s grid and raise infrastructure costs.
AI-driven data center growth is sharply increasing electricity demand in Texas. Prime Data Centers operates a 20-megawatt campus near Dallas Love Field, while CleanArc Data Centers is developing a 245-megawatt campus nearby. Much larger projects include Microsoft’s 2-gigawatt facility in Reeves County, Meta’s 1-gigawatt data center in El Paso and Fermi’s proposed Project Matador near Amarillo, which could eventually require up to 17 gigawatts.
Oncor reported that data centers accounted for most of its massive interconnection queue, despite the utility’s peak capacity being far smaller than the requests awaiting connection. Hao Zhu, an associate professor at the University of Texas at Austin, said data centers create both unprecedented demand and rapid power fluctuations that can destabilize the grid. The article also discusses potential responses including new generation, behind-the-meter plants, improved cooling efficiency and coordination to reduce data center consumption during periods of grid stress.