ERCOT has revealed that peak electricity demands are expected to double within six years due to the growth of cryptocurrency mining and AI data centers in Texas. The state’s grid operator shared this forecast during a recent state senate committee hearing, where they highlighted the potential impact on the reliability of the power grid.
According to ERCOT CEO Pablo Vegas, the expected power grid demands are projected to nearly double by 2030, increasing from 85 to 150 gigawatts. This significant increase in demand is largely attributed to the growth of crypto mining and AI data centers, which are estimated to contribute to about half of the total growth.
The surge in power demands is a concern for state officials, including Lt. Gov. Dan Patrick, who emphasized the need to prioritize residential and business customers over niche industries with high power demands. The state aims to prevent potential grid failures caused by excessive power consumption from these sectors.
The rise in power demands from crypto miners and AI data centers has raised questions about the sustainability and reliability of the grid. While efforts are being made to upgrade the grid and attract investments in new natural gas plants, the issue of balancing power supply and demand remains a challenge for Texas.
Overall, the projections by ERCOT underscore the need for careful management of power resources to ensure the stability of the state’s electricity grid in the face of increasing demands from emerging industries.
Hirs stated, “Otherwise, we are looking at four to five years if we started today,” he said.
