The Electric Reliability Council of Texas, or ERCOT, is changing the way it evaluates its transmission capacity to connect data centers, cryptocurrency miners and other "large loads" to the grid, according to Houston Public Media.
The Texas Tribune reports Texas could soon lead the nation in the number of data centers.
And don't forget the population boom in the Lone Star State as many are fleeing Blue States.
Some data centers will build their own power generation plants that use natural gas to generate electricity and some of those could send power back to the Texas grid.
Carson Clayton is an Energy & Environment policy analyst for the Texas Public Policy Foundation.
"Typically when a large load like a data center or crypto mining facility or even an industrial large load is wanting to come onto the grid, ERCOT does an interconnection study to make sure that the transmission system can handle it. Right now, they're attempting to change their methodology to study these projects in batches rather than individuals because they're coming so quick. If you did one at a time, by the time you finish one, it might be outdated."
He said a transmission fee shows up on all electrical bills in the state and that accuracy is important. He said ERCOT is also expanding its transmission infrastructure.
“These are 765 KV (Kilovolt), like high voltage transmission lines, bigger than any transmission lines that currently exist in Texas. They're working on building a few thousand miles of these. They're going to cost at least $33 billion, probably more. And every Texan will see that on their electric bill to the tune of $150, maybe $200 per year. And that's on top of $15 billion Texans have paid in transmission costs since 2010 to support wind and solar because you have to build those far away from the places that actually need power."
He said residents and lawmakers are concerned about data centers causing problems for the grid but believes it will expose the past issues the grid has faced and said a lot of that has to do with overinvestment in or more reliance on wind and solar. He went on to say that data centers could help with volatility of electrical demand.