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UH report: Texas is at the center of the U.S. electricity demand boom

Shafaq Patel

Animated illustration of a data center corridor with servers on each side. Along the left-hand side, lights spelling out "%&&#!" appear, and then lights in the shape of an upward trending arrow appear on the right-hand side. — Illustration: Brendan Lynch/Axios

After decades of relatively flat electricity demand, the U.S. is entering a data-center-fueled power boom — and Texas is at the center of it, per a new University of Houston report.

Why it matters: What happens in Texas could offer an early look at how the rest of the country adapts to the growing power needs and challenges, says Greg Bean, executive director of the University of Houston's Gutierrez Energy Management Institute.

The big picture: U.S. electricity use could grow 32% by 2030, with data centers accounting for about 55% of projected peak-demand growth over the next five years, per the UH report.

What they're saying: Texas is "at the leading edge" of the transition, Bean tells Axios. "Everything's happening in Texas and seems to be happening faster."

Zoom in: West Texas is expected to see some of the country's fastest growth, with annual electricity demand rising more than 7% through 2035 and peak demand more than 5%.

State of play: Bean says there's opportunity to better use the grid's capacity. It operates at roughly half capacity on average because it's built to handle periods of peak demand.

What we're watching: The Electric Reliability Council of Texas plans to audit hundreds of data center proposals by Dec. 10, as part of Gov. Greg Abbott's moratorium on new interconnections.

The audit will help determine how many projects and how much new electricity demand are likely to materialize.

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UH report: Texas is at the center of the U.S. electricity demand boom

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