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Texas suspends electricity for data centers

Shafaqna English– Data centers across the central United States have submitted electricity requests totaling roughly 700 gigawatts—equivalent to the power needed for every American home—but much of this demand may be speculative or duplicative, prompting Texas to become the first major data center hub to freeze new grid connections while it investigates project viability.

Other states are following suit as regulators and politicians grapple with the growing challenge of distinguishing genuine energy needs from “ghost” demand. A Reuters review reveals that these requests, primarily from large power users, far exceed current industry estimates of U.S. data center consumption by more than tenfold.

Consumer advocates warn that many proposals lack funding or expertise, risking distortion of grid planning essential for reliable electricity supply.

Major utilities have already begun revising demand figures downward once financial safeguards like upfront payments are introduced. In response, states including Texas, Pennsylvania, and Ohio are implementing rules to filter out unviable projects that could inflate costs and trigger public backlash.

As Texas Public Utility Commission Chairman Thomas Gleeson put it, without knowing what is real, building the necessary infrastructure becomes nearly impossible.

Source: Reuters

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