Texas’ electricity use is expected to nearly double by 2030, and that has people concerned. As a result, state lawmakers are currently considering legislation to regulate data centers and large electricity consumers. Senate Bill 6, which mandates infrastructure improvements and assigns upgrade costs to substantial electricity users to prevent grid strain, has passed unanimously in the Senate and now goes to the House. It reflects the growing concern over the energy demands of expanding data centers.
“Texas is open for business like never before. As more people and companies move to Texas, our grid must become even stronger and more reliable to ensure the Texas Miracle continues uninterrupted,” Lt. Gov. Dan Patrick said in a statement following the unanimous passage of Senate Bill 6, Increasing Texas’ Electric Grid Reliability.
The Electric Reliability Council of Texas (ERCOT) estimates load growth to a total between 130 and 150 gigawatts of power by 2030. ERCOT’s 2024 peak was about 86 gigawatts.
“While this growth represents a humongous economic opportunity for Texas, we must ensure our grid is prepared to manage this tremendous growth,” Patrick said. “I am prioritizing SB 6 because it strengthens the Texas electric grid and will ensure its reliability while managing our state’s growth over the coming years.”
Senate Bill 6, which was introduced by Sen. Phil King, improves the credibility of ERCOT load forecasts, protects against outages, and improves transmission cost allocations.
The Texas electrical grid is already known for being unreliable. Without adequate power generation, winter storms regularly cause rolling blackouts as the grid becomes overloaded.
“In 2002, Texas dispensed with a reliable end-to-end electricity supply chain that the consumer could count on in the heat of summer and cold of winter. It has been replaced by a 100 percent government operated grid under which consumers pay more, get less, and no one can be held accountable,” Forbes magazine reported.