Texas data center grid impact sparks legislative testimony

Texas lawmakers met to discuss the booming data center industry and its implications for the state's power grid, with Texas projected to become the nation's leader in data centers by 2030. During a hearing of the Texas House Committee on State Affairs, ERCOT President and CEO Pablo Vegas testified that data center projects are growing rapidly, with nearly 90% of new requests in the queue coming from data centers. He stressed that data centers must have backup generation and not burden the grid during emergency events. Texas Public Utility Commission Chair Thomas Gleeson also testified, assuring lawmakers like Rep. Chris Turner that the commission aims to establish a framework based on 'cost causation principles' to prevent residential ratepayers from bearing the costs of data center-related grid demands. Data center executives present at the hearing affirmed their commitment to being 'good neighbors,' with one mentioning the use of closed-loop water systems that consume less water than an average hotel. Lt. Gov. Dan Patrick has also directed Senate committees to examine data center growth and its impacts. The PUC chair expects further discussions on data centers at an upcoming meeting, and the Texas Committee on State Affairs plans another meeting for public input.