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Texas Power Demand Set to Double Due to Bitcoin Mining!

ERCOT Forecast: Data Centers to Drive Texas Power Demand Up by 2030!

June 17, 20243 min read

Texas Power Demand Set to Double Due to Bitcoin Mining!

ERCOT Forecast: Data Centers to Drive Texas Power Demand Up by 2030

A recent forecast from the Electric Reliability Council of Texas (ERCOT) reveals a significant surge in the state's power demand, predicting it will nearly double by 2030. This increase is primarily driven by the expanding presence of bitcoin mining operations and data centers.

ERCOT's Power Demand Forecast

According to ERCOT, the power demand is expected to rise to 150 gigawatts by 2030, a substantial jump from the current 85 gigawatts. Notably, 60% of this projected demand—an additional 40 gigawatts—will come from crypto mining and data centers, including those operated by artificial intelligence. Lori Cobos of the Public Utility Commission of Texas highlighted this trend during a recent Texas Senate Business and Commerce Committee meeting.

Political Reactions and Concerns

The forecast has alarmed politicians across the spectrum, leading to questions about the accuracy of ERCOT's forecasting model, the timing of this revelation, and potential regulatory measures to manage AI businesses in Texas. Lieutenant Governor Dan Patrick emphasized the need for scrutiny, noting that the high power demands from these operations could impose significant costs on Texans. He pointed out that crypto miners might earn more by selling electricity back to the grid than from their mining activities.

Legislative Challenges Ahead

With only three legislative sessions remaining before 2030, the state government is under pressure to adapt to these new projections. Initially, preparations were based on an expected demand of 110 gigawatts. However, ERCOT Chief Operating Officer Woody Rickerson mentioned that the latest forecast employs a different, less conservative methodology.

Senator Donna Campbell expressed concerns about potential further increases in power demand due to emerging technologies. "AI’s just come on the scene, but who knows what’s next, even after that, that will consume even more?” she remarked.

Additional Sources of Increased Power Demand

The remaining 40% of the projected power demand increase will be driven by hydrogen production facilities and the expansion and electrification of existing industries, such as oil and gas. Additionally, Texas's population is expected to grow from 30 million to 50 million by 2050, further amplifying power needs.

Addressing the Demand-Supply Balance

Despite recommendations for rooftop solar panels and smart meters, Matthew Boms, Executive Director of the Texas Advanced Energy Business Alliance, argues that boosting supply alone won't ensure power reliability. He stresses the importance of addressing energy efficiency, demand response, and distributed energy resources to tackle the problem effectively.

Historical Context and Recent Events

Texans remain particularly vigilant about ERCOT's updates, especially following the catastrophic grid failure during a winter storm over three years ago, which left millions without power and led to hundreds of deaths. More recently, a derecho in Houston caused widespread power outages, affecting nearly a million people and resulting in over $100 million in repair costs.

Conclusion

As Texas braces for a dramatic rise in power demand by 2030, driven largely by bitcoin mining and data centers, the state faces significant challenges. Addressing these issues will require a combination of regulatory measures, technological advancements, and a keen focus on both supply and demand-side solutions.

Should you need an experienced Commercial Real Estate Mortgage Broker, please feel free to contact me at 281-222-0433.

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Texas Power Demandbitcoin miningtexas data centersERCOT Forecastcrypto miningArtificial Intelligencepower reliabilityDistributed Energy Resourcesenergy efficiencyTexas Senate Business and Commerce CommitteePublic Utility Commission of Texas
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Bill Rapp - Commercial & Residential Mortgage Broker

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This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply

Corporate | NMLS ID NMLS # 1825831

Corporate Address : 11920 Southern Highlands Parkway, Suite 302, Las Vegas, NV 89141 https://medallionfunds.com/bill-rapp/