Texas data centers raise blackout risk during extreme winter weather
A worker repairs a power line in Austin, Texas, U.S., on Wednesday, Feb. 18, 2021.
Thomas Ryan Allison | Bloomberg | Getty Images
The rapid expansion of data centers in Texas is driving electricity demand higher during the winter, compounding the risk of supply shortfalls that could lead to blackouts during freezing temperatures.
The Lone Star state is attracting a huge amount of data center requests, driven by its abundant renewable energy and natural gas resources as well as its business friendly environment. OpenAI, for example, is developing its flagship Stargate campus in Abilene, about 150 miles west of Dallas-Forth Worth. The campus could require up to 1.2 gigawatts of power, the equivalent of a large nuclear plant.
The North American Electric Relibaility Corporation warned this week that data centers’ round-the-clock energy consumption will make it more difficult to sustain sufficient electricity supply under extreme demand conditions during freezing temperatures like catastropic Winter Storm Uri in 2021.
“Strong load growth from new data centers and other large industrial end users is driving higher winter electricity demand forecasts and contributing to continued risk of supply shortfalls,” NERC said of Texas in an analysis published Tuesday. Texas faces elevated risk during extreme winter weather, but the state’s grid is reliable during normal peak demand, NERC said.
During Uri, demand spiked for home heating in response to the freezing temperatures at the same time power plants failed in large numbers due to the same weather. Texas grid operator ERCOT ordered 20 gigawatts of rolling blackouts to prevent the system from collapsing, according to a Federal Energy Regulatory Commission report. The majority of the power plants went offline ran on natural gas.
It was the “largest manually controlled load shedding event in U.S. history” resulting 4.5 million people losing power for several days. At least 210 people died during the storm. Most of the fatalities were connected to the outages and included cases of hypothermia, carbon monoxide poisoning, and medical conditions exacerbated by freezing termperatures, according to FERC.
Data center requests surge
In the years since Uri, Texas has received a staggering amount of requests from data centers, crypto mining facilities and industrial customers seeking a grid conenction. More than 220 gigawatts of projects have requested connection as of this month, a 170% increase over the 83 gigawatts of project requests back in January, according to data published Wednesday by ERCOT.
About 73% of the projects requesting connection are data centers, according to ERCOT.
If all of those projects were actually built, they would be equivalent to the average annual power consumption of nearly 154 million homes in Texas, according to a CNBC analysis based on 2024 household electricity data. But the Lone Star state only has a population of about 30 million people.
Beth Garza, a former head of ERCOT’s watchdog,…
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