Data Centers, Oil & Gas Industry to Drive Surge in Texas Electricity Demand

April 25, 2024--Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Texas electric grid operator is expecting "tremendous electric demand growth" over the next five to seven years, driven mainly by data centers, oil and gas operations, other new businesses and new residents, Pablo Vegas, president and chief executive of the Electric Reliability Council of Texas (ERCOT) (Austin, Texas), told the agency's board of directors this week. The surge in future demand could be about 40,000 megawatts (MW) above the agency's forecast from last year, and could place added stress on ERCOT's ability to keep the lights on in the Lone Star State.

ERCOT, which serves an estimated 90% of Texas, hit a record peak load of 85,508 MW on August 10, 2023, the agency said. By 2030, Vegas said April 23, ERCOT's load could reach about 152,000 MW--nearly double its historic peak and far higher than what it projected in 2023.