Texas Grid Operator Warns of Power Outages Worsened by Data Centers
Earlier in November, the Electric Reliability Council of Texas (ERCOT) released a report warning that the state could face serious power outages this winter, if conditions from 2021 or 2022 reoccur. While ERCOT has taken steps to strengthen its grid, a spokesperson told The Houston Chronicle that power demand from facilities like data centers has made outages more likely. Data centers are used by both crypto currency miners and AI companies, and consume an immense amount of energy to perform computational tasks. In San Antonio, the municipal electricity company CPS Energy has announced that it will be investing $1.3 billion on transmission projects to accommodate new data centers.
In 2022, CfA’s Tech Transparency Project released a report documenting how Texas crpyto mining facilities were making millions of dollars via sweetheart deals with ERCOT, which allowed them to sell energy back to the grid during periods of high demand. Soon after, AI companies began expanding their computing operations, which placed a new burden on grids across the country. In July, the U.S. Energy Information Administration (EIA) indicated it would developing a survey of the crypto currency mining industry’s energy use, though it is not clear if this plan will be carried out under the Trump Administration.
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