Texas is quickly becoming a national hub for data center development. This growth presents major economic opportunities, such as job creation and technological advancement. However, it also raises questions about potential impact on the state’s electric grid and natural resources. Since data centers are resource intensive and projected to scale in the coming years, there is a need for an integrated policy framework that lays the foundation for a sustainable digital economy in Texas.
ERCOT’s recent projections show steep increases in electricity demand in the next few years, much of it driven by the rise of data centers. HARC, in partnership with the University of Houston, has written a two-part Policy Brief titled Powering Texas’ Digital Economy: Data Centers and the Future of the Grid, which explores how data centers are evolving across Texas and what this means for the grid’s future:
Part 1 introduces why data centers are booming in Texas, the types of facilities being built, and how they operate.
Part 2 will highlight findings from the University of Houston on future growth trends, potential impacts on the Texas energy system, and translate this knowledge into practical recommendations to protect grid reliability while fostering sustainable growth of the industry.
Without thoughtful planning and strategic policies, the fast expansion of data centers could overload Texas’ energy infrastructure and threaten progress toward a resilient, sustainable grid.
