Done right, data centers can help keep San Antonio’s power bills in check

The San Antonio Report published a commentary discussing the rapid growth of data centers in Bexar County and their significant impact on the city's power grid and electricity bills. Currently, two dozen data centers consume 324 megawatts, with an additional 2,700 MW expected by 2028 and over 3,300 MW by 2033. CPS Energy anticipates spending approximately $1.3 billion on transmission projects over the next five years to meet this demand, prompting discussions at San Antonio City Hall and CPS Energy about funding these costs. The author proposes a solution: utilizing the existing electric grid more effectively, rather than relying solely on new infrastructure. Financial analysis by GridCARE suggests that one gigawatt of AI data center load serviced by the current system could generate $123 million annually in new revenue, potentially reducing system-wide rates by 4.4% or funding $1.45 billion in new infrastructure without rate increases. This approach leverages existing underutilized capacity on the grid. The commentary highlights that tools for this strategy already exist, such as Texas Senate Bill 6, which mandates curtailment requirements and voluntary demand response programs for large loads. This allows data centers to connect sooner if they agree to reduce consumption during peak stress hours, as successfully demonstrated by Portland General Electric and GridCARE in Hillsboro, Oregon. The author argues that this is a pragmatic affordability strategy for San Antonio residents, honoring past infrastructure investments while planning future upgrades. The piece concludes that San Antonio can attract data center investment, diversify its tax base, modernize its grid, and keep electricity affordable by intelligently governing load growth through a technical framework that translates "flexibility" into certifiable capacity.