Part 2: Why is everyone suddenly talking about data centers and the Texas grid?

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Quick answer: Everyone seems to be talking about the Texas grid and data centers because, as of mid-2026, ERCOT was tracking roughly 475 gigawatts of requests from large new electricity users hoping to plug into the Texas grid, and about 90% of that came from data centers. That’s more than five times the most electricity Texas has ever used at once. It sounds terrifying, but a big chunk of those requests are speculative fantasy projects that will never materialize, and Texas is auditing the list to weed them out.

Key takeaways

ERCOT tracked about 475 gigawatts of large-load requests in mid-2026, roughly 90% from data centers.
One gigawatt powers about 200,000 Texas homes on a hot day, so that request pile is wildly bigger than the whole state’s demand.
Many of those requests are speculative “ghost” projects that will never get built.
Texas is auditing the queue to separate the real projects from the crayon.

What is a data center, and why does AI use so much electricity?

Room full of super computers demonstrating the electricity used by a data center

A data center is a building, usually a big windowless one, packed with computer servers that run the internet for the rest of us: streaming, banking, cat videos, and now artificial intelligence. AI is the reason the power numbers went vertical. Training and running AI models burn absurd amounts of computing power, and computing power runs on electricity. A single large AI data center can gulp down as much power as a small city, and it does it 24/7 without ever going to bed.

Wait, what’s a gigawatt, and should I care?

This is a fair question, because “gigawatt” is one of those words that’s technically English but emotionally meaningless. Let’s translate it into Texan.

One gigawatt (a billion watts) powers roughly 200,000 Texas homes on a hot summer afternoon, when every AC in the state is cranking, and the grid is sweating through its shirt. Under milder weather, it stretches closer to half a million homes. It’s about the output of a large nuclear reactor. And for the film buffs: it’s essentially the jolt Doc Brown needed to send the DeLorean back to 1955, except he was scrounging for 1.21 gigawatts, and some of these data centers want more than that per building. Great Scott.

Now point that at the 475 GW request pile. At 200,000 homes each, that’s enough electricity to power every home in Texas roughly eight times over and still have some left to spare. Which tells you two things: why nobody at ERCOT is sleeping, and why most of that number can’t possibly be real.

How much new power are data centers actually requesting?

The headline figure is a showstopper. As of mid-2026, ERCOT was tracking roughly 475 gigawatts of requests from large new users, with data centers making up about 90%. For comparison, Texas has never used more than about 91,000 megawatts (91 gigawatts) at one time, a record set in the summer of 2026. So the wish list is more than five times everything the grid has ever delivered at its busiest moment.

Why do data centers want to build in Texas specifically?

Same reasons everyone else moves here: land, a business-friendly attitude, and a grid (ERCOT) that can say yes relatively fast. Texas also has a mountain of natural gas and one of the country’s largest wind and solar fleets. If your business plan is “use a heroic amount of electricity, immediately,” Texas is basically the top of the list.

Are all of those data center requests real? (Spoiler: no.)

Nope, and this is the part the scary headlines skip. Industry experts have testified that “ghost” projects clog the interconnection queue, meaning speculative requests that will never get built. One data center developer said people pitched them more than 15 gigawatts of projects with power demands that were, and this is a direct quote, “basically impossible to construct.” Some developers also file the same project in several places at once while shopping for the best deal, which double-counts demand.

Translation: that eye-popping 475 gigawatt number is a wish list written in crayon, not a construction plan. A big share of it will quietly evaporate. Texas isn’t taking it on faith either. Governor Greg Abbott ordered ERCOT and the Public Utility Commission to audit every data center request in the 2026 queue, forcing projects to disclose their ownership, finances, and water use or get shown the door.

Get the real tea on data centers and your electric bill

Frequently asked questions

How much electricity does a data center use?

A data center’s electricity use depends on its size, computing workload, and cooling needs. According to the International Energy Agency, a conventional data center may draw around 10–25 megawatts (MW) of power, while a large facility focused on artificial intelligence can have a capacity of 100 MW or more. These figures describe different types of facilities, rather than a universal average.

For perspective, a facility drawing 100 MW continuously would use 2.4 million kilowatt-hours (kWh) in 24 hours. That calculation assumes a constant power draw; actual consumption changes with equipment use and operating conditions. Electricity powers the servers, data storage, networking equipment, and cooling systems that keep the facility running.

Will the Texas grid run out of power because of data centers?

Data centers are increasing electricity demand in Texas, but their growth does not mean power shortages are inevitable. The risk depends on whether available electricity supply and the transmission system can keep pace with demand. ERCOT, which operates the grid serving most of Texas, includes data centers in its planning but cautions that preliminary demand forecasts are not predictions of how many proposed facilities will actually be built.

For fall 2026, ERCOT expects sufficient generation to meet demand under expected weather conditions. That seasonal outlook does not guarantee against outages or determine that every proposed data center can be supplied. ERCOT and the Public Utility Commission of Texas are also evaluating proposed data centers’ dependence on grid electricity and their use of on-site generation to better understand future impacts.