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AI could strain Texas power grid this summer

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AI could strain Texas power grid this summer


Texas is no stranger to power-grid anxiety. Between the heat that’s only getting hotter, an aging fleet of power plants, and the challenges of integrating renewable energy, the system is fragile.

Now, a boom in energy-hungry computer data centers is adding a new element of risk this summer.

“How many are coming? That’s still TBD, but we know that they are explosively growing,” ERCOT CEO Pablo Vegas, told lawmakers in one of two hearings this month at the state capitol.

Vegas said many of those centers mine crypto currency. But more and more of them are being built to support artificial intelligence systems. They are drawn to the state thanks to low energy costs, minimal regulation and a booming economy. But they use a lot of energy.

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“If you do a google search and just look up ‘What is ERCOT?’ If you did that with a regular google system versus an AI google search, the amount of energy that it takes to run the AI search, is between 10 and 30 times the power requirement than to do a traditional google search,” Vegas said.

Many estimates you find online appear to be on the lower end of that spectrum. But it’s clear that Texas, in particular, could find that growing energy demand challenging.

Ever since a deadly blackout in 2021, state officials have worked to strengthen the power grid. They’ve started programs to subsidize new power plants and improve transmission lines.

But, those things take years to build. Data centers — some that use as much energy as small cities — can be built in just a matter of months. That is a serious challenge for grid operators, says Doug Lewin, who publishes the Texas Energy and Power Newsletter.

“How do we build enough infrastructure to accommodate a new city popping up in six months, with effectively no notice?” he asks. 

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The answer: maybe you don’t.

Renee Dominguez

/

KUT News

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State officials have long declared Texas “open for business” and celebrated in new opportunities, including the construction of this Samsung semiconductor plant in Taylor.

‘The most worrisome thing’

State officials have long declared Texas “open for business.” Reveling in each victory as they lured things like Tesla’s new gigafactory and Samsung’s new microchip plant to the state.

But now, some wonder whether data centers are worth it.

Cryptomines and data centers “produce very few jobs compared to the incredible demands they place on our grid,” Lt. Governor Dan Patrick posted on X, formerly known as Twitter, after the hearings. “Texans will ultimately pay the price.”

State lawmakers, likewise, peppered this month’s hearings with questions about whether the state could put the brakes on data center growth, or compel the companies to pay for their increased energy transmission needs.

“That’s sort of wild to think about,” Lewin said. “That’s a huge, huge break from the way things have been done.”

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Assuming that cryptomines and data centers are here to stay, grid operators say they would like new rules to allow them to better monitor the facilities’ energy use and potentially control it.

Despite recent legislation compelling cryptomines to register with ERCOT, Vegas told members of the House State Affairs Committee that about half of companies still have not.

“On legislation […] what would be more helpful for ERCOT is to have more visibility to what these large loads are doing,” he said. “And so a good place to start could be making sure we can track and even potentially control the [energy] loads of cryptos.”

At a recent ERCOT board of directors meeting, Dan Woodfin, the group’s vice president of system operations, said the inability to forecast energy use by crypto mines and similar big power consumers was “the most worrisome thing” going into this summer.

ERCOT puts the chance of rolling blackouts at around 12% in August.

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Demand is outpacing supply

In the electricity business, what Vegas proposes — reducing energy use by certain users at certain times — is often called a “demand side” solution to grid challenges.

The idea is that you can strengthen the grid more cheaply and quickly by lowering energy consumption rather than increasing supply.

“We cannot build the grid fast enough to keep up with demand… Even before we had every damned crypto and data center … move to Texas,” Alison Silverstein, a consultant and former state and federal energy official, told KUT. 

Texas currently consumes more energy than any other state. Silverstein has long advocated for increasing energy efficiency standards in the state to help bolster the energy system.

A recent study from the American Council for an Energy Efficient Economy says improving efficiency standards in Texas would be a more economical way of reducing high energy demand in the summer and winter to strengthen the grid.

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Silverstein says it would not only mean people need less power to cool their homes, run their appliances and do business, it would also go a long way toward keeping the lights on.

But lawmakers and regulators have traditionally balked at improving efficiency in Texas, a state known for producing energy not conserving it.

Silverstein says that may be changing, as the challenges of rapidly increasing energy demand become clearer to those in charge of the Texas power system.

At one recent hearing ERCOT’s Vegas referred to efficiency and demand response as an essential tool in keeping the Texas grid stable.

Silverstein says the question is whether that rhetoric will turn into state policy.

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“That’s when we’ll know that they really mean it in terms of demand-side solutions, and it’s not just hand waving,” she says.





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Austin, TX

Austin airport one step closer to major expansion that will add 32 new gates

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Austin airport one step closer to major expansion that will add 32 new gates


AUSTIN, Texas — Austin-Bergstrom International Airport is one step closer to getting a major makeover after finalizing lease agreements with airlines that will support future renovations, including the addition of 32 new gates.

The airport on Wednesday announced the completion of Airline Use and Lease Agreements and Signatory Cargo Agreements with several major airlines and cargo companies, including Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Airlines, FedEx and UPS.

According to a press release from the airport, the use-and-lease agreements allow companies to commit funding to the project through rent and fees “generated under the agreements’ cost-recovery structure, supporting the airport’s ability to deliver projects that expand capacity, strengthen resiliency, and improve the passenger experience.”

The agreements will support the following projects at Austin-Bergstrom over the next 10 years:

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  • The addition of Concourse B, which will add 26 new gates, including 18 for Southwest Airlines and five with United Airlines.
  • Concourse M, adding six new gates, a bus to transport travelers to and from the Barbara Jordan Terminal, new concessions, restrooms and passenger amenities.
  • Enhanced seating and amenities, increased space and modernized concessions in Concourse A (home to all international flights). Delta Air Lines will have 15 gates, American Airlines will have nine, Alaska Airlines will have one and there will be eight common-use gates.
  • Updates to HVAC systems, electrical system, IT and telecommunications, storm drainage, water quality and de-icing infrastructure.

In a statement, District 2 Councilmember Vanessa Fuentes applauded the future job creation that’s to come out of the project. 

“This expansion program represents a tremendous economic opportunity for Austin—not only through the trades and construction jobs created during the buildout, but also through long-term jobs in concessions, airport operations, and airline services after the program is complete,” Fuentes said.

“This agreement reflects years of partnership, thoughtful negotiations, and shared vision with our airline partners. Their commitment provides the financial foundation we need to modernize our facilities, transform customer experience, and build the infrastructure needed to support Central Texas’ continued growth for generations to come. AUS would not be where it is today without the collaboration and investment of our airlines, and we are deeply grateful for their trust and partnership as we shape the future of air travel in Central Texas,” said Ghizlane Badawi, CEO of Austin-Bergstrom International Airport.

The final cost of the project is still under development, but is anticipated to grow from an estimated $4 billion to $5 billion. According to the airport, funding sources include airport cash reserves, airport revenues, bond proceeds and grants from the Federal Aviation Administration. 

“No local Austin taxpayer dollars are used to fund the airport’s expansion program,” the release said.



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Austin, TX

Black Sheep Coffee Opens First Austin Location, Expanding Its Texas Footprint | What Now Austin

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Black Sheep Coffee Opens First Austin Location, Expanding Its Texas Footprint | What Now Austin


Black Sheep Coffee, the international coffee brand, will celebrate the opening of its first Central Texas location in Downtown Austin with two public events. The new café, located at W 6th St & Guadalupe St, Austin, TX 78701, marks a significant step in the company’s U.S. expansion following strong growth throughout the Dallas–Fort Worth region.

A public ribbon-cutting ceremony, hosted in partnership with the Austin Chamber of Commerce, will take place on Thursday, January 15 from 12:00 p.m. – 2:00 p.m., welcoming community members, local leaders, and partners into the space. During the event, guests can enjoy half-price lattes, including coffee and matcha drinks.

On Saturday, January 17, Black Sheep Coffee will officially celebrate their grand opening with a Sips & Beats event from 11:00 a.m. to 2:00 p.m., featuring live vinyl set by DJ Foxxy Brown, signature menu tastings, and half-price lattes throughout the event. Continuing the celebration, the store will also offer a 50% discount to International Half Marathon medal holders on Sunday, January 18, welcoming runners and spectators to refuel post-race.

Designed to reflect Austin’s creative identity, the location features custom graffiti artwork inspired by the city’s street art scene and the energy of Downtown. The new outpost will serve Black Sheep Coffee’s complete menu, including its 100% specialty-grade Robusta coffee, ceremonial-grade matcha, smoothies, pastries, Norwegian waffles, curated food offerings, and two bakery variations created exclusively for the Austin store. Additional limited-time items will debut later in January as part of the brand’s functional health product refresh.

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Austin has long been on our radar for its passionate community and standout coffee culture,” said Eirik Holth, co-founder of Black Sheep Coffee in a statement. “We’re excited to become part of that fabric and bring something new to Downtown. With several U.S. locations in the pipeline, Austin marks a major milestone in our next chapter of growth.

Black Sheep Coffee chose Austin for its strong alignment with the brand’s ethos and its reputation as a city that celebrates individuality and creativity. The opening also reinforces the company’s long-term commitment to Texas, with several additional locations planned statewide for 2026.

The Austin café will be open Sunday through Thursday from 6:00 a.m. to 8:00 p.m. and Friday and Saturday from 6:00 a.m. to 9:00 p.m. For more information, visit BlackSheepCoffee.us.



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Lawsuit: Brianna Aguilera’s parents allege underage alcohol service at Austin tailgate contributed to daughter’s death

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Lawsuit: Brianna Aguilera’s parents allege underage alcohol service at Austin tailgate contributed to daughter’s death


The parents of Brianna Aguilera have filed a lawsuit against two organizations, alleging that they served alcohol to their underage daughter which contributed to her death in Austin.

Before Aguilera fell to her death from the Rio 21 Apartments in West Campus, the lawsuit states that she attended a tailgate at the Austin Blacks Rugby Club’s facility, organized by the UT Latin Economics and Business Association.

Both the Austin Blacks Rugby Club and the UT Latin Economics and Business Association were listed as defendants in the lawsuit.

>> What we know about Texas A&M student Brianna Aguilera’s death in Austin

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Even though the lawsuit states Aguilera was “noticeably intoxicated” at the tailgate, her parents argue that the defendants continued to serve her alcohol.

According to court documents, Aguilera allegedly began stumbling at the tailgate and needed help standing at times. At some point, the lawsuit said she fell into the woods and lost her phone.

After leaving the tailgate at approximately 10 p.m., court documents state Aguilera died around two hours later.

The lawsuit also accuses the defendants of negligence and gross negligence for serving alcohol to Aguilera despite her age and allegedly overserving her.

In the suit, Aguilera’s parents demanded a trial by jury and sought at least $1 million plus interest, costs and punitive damages.

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Aguilera’s parents also seek damages for wrongful death, citing the defendants’ alleged misconduct.

Houston-based attorney Tony Buzbee, who’s representing the Aguilera family, commented on the lawsuit in a Tuesday news conference.

Watch the full news conference below:

“Brianna was obviously overserved,” Buzbee said. “Even the police have concluded that she was overserved at that tailgate. She was not 21.”

Buzbee also stated that the Austin Police Department has allegedly told multiple witnesses not to talk with him and Aguilera’s parents.

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“They told the three, the three individuals that were in that apartment that night when this young girl died. They told them, do not speak to Brianna’s mother or her lawyers,” Buzbee said.

He said that the lawsuit could provide a way for the witnesses to eventually come forward with information.

“By filing this lawsuit, not only will we hold accountable an entity or entities that were involved in overserving Brianna and other minors, but we will also be able to subpoena individuals and documents and video and data so we can continue our investigation,” Buzbee said.

KSAT’s sister station, KPRC, has reached out to both the Austin Blacks Rugby Club and the UT Latin Economics and Business Association for comment on the lawsuit. This story will be updated once the organizations provide a statement.


More coverage of this story on KSAT:

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