Texas lawmakers OK bill to manage surging electricity demand

By Jeffrey Tomich | 06/02/2025 06:57 AM EDT

If signed into law by Gov. Greg Abbott, large data centers would pay more for grid connections and could be forced to curtail energy use in emergencies.

The Texas State Capitol is seen.

Texas legislators gave bipartisan support for ensuring expensive grid upgrades and management are borne partly by tech companies and other large industrial users flooding into the state. Tamir Kalifa/Getty Images

A Texas bill aimed at helping plan for data centers and other new large electricity users and ensuring the reliability of the state’s main power grid will go to the desk of Republican Gov. Greg Abbott.

S.B. 6, passed by Texas lawmakers last week, is among a number of proposals in state capitols nationwide made in response to a surge of data centers, manufacturing and cryptocurrency mines that are putting pressure on the grid.

Nationally, electricity demand is projected to jump 25 percent by the end of the decade from 2023 levels according to a recent report from consultants ICF. In the Electric Reliability Council of Texas (ERCOT), the power grid for most of the state, that growth rate could be twice that, according to regulators.

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The Texas bill, proposed by state Sen. Phil King (R) and identified by Lt. Gov. Dan Patrick (R) as a legislative priority for the session that wraps up Monday, was pitched as a way to balance economic growth and grid reliability.

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