AUSTIN, Texas — Texas power officials are meeting in Austin this morning to grapple with a growing challenge: how to connect massive new electricity users tied to AI and data centers without overloading the grid during peak demand and emergencies.
ERCOT’s Large Load Working Group is meeting in Austin to discuss how to connect major power users while ensuring the grid can still handle high-demand days and emergencies. The discussion comes after months of conversations between ERCOT and lawmakers about whether new data centers will put more strain on the grid and whether the companies behind them should help pay for the power and transmission upgrades they need.
Some proposals on the group’s agenda focus on how large users could cut back when the grid needs relief.
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Experts say data centers use almost 10 gigawatts of power from the Texas grid, about 2.5 million homes during ERCOT’s peak hours.
The meeting is a working group discussion and not a final vote on a new rule.
A Cleanview data center map tracker lists around 500 data center facilities and projects in Texas. About 140 are operating, and hundreds are planned.
The meeting is being held this morning at ERCOT’s Austin office.
Meanwhile, ERCOT and its CEO, Pablo Vegas, are facing controversy over his pay.
An ERCOT board presentation listed up to $6.4 million in potential earned compensation for Vegas in 2027. After Lt. Gov. Dan Patrick criticized the proposed contract, Vegas told The Texas Tribune it will not be executed and that he will remain under his current agreement. The board did not take a public vote to rescind its approval.