Texas Data Centers and Crypto Miners Cut Power Usage Amid Storm
Electric Reliability Council of Texas Chairman Bill Flores stated on Thursday that several data centers and cryptocurrency miners voluntarily reduced their power consumption during the recent winter storm, which put significant pressure on the state’s electrical grid and others nationwide.
The surge in electricity demand from data centers supporting artificial intelligence and various industrial operations is a key factor driving rapid growth in Texas and beyond. This increase in demand is contributing to higher utility bills for residential customers and forcing grid operators to make challenging decisions regarding power distribution. In response to the storm, Texas reduced its live power-demand forecast by 13% after the event had already begun. Following the deadly grid disaster in 2021, ERCOT has adopted a more cautious approach to securing energy supplies.
“The last image a crypto miner or hyperscaler wants is to have all their lights on and processors running while a school is experiencing power cuts,” Flores remarked during an interview on the sidelines of Baker Hughes’ annual meeting in Florence, Italy. “There’s a group of large energy consumers in Texas that are eager to cooperate and recognize the importance of collaborating with the state’s grid operator.”
Some major technology firms are investing in generation facilities dedicated solely to powering their data centers, rather than contributing to the broader grid. “However, I envision some form of interconnection for all these hyperscalers,” Flores noted. “It will likely be a combination of both approaches.”
The sheer volume of electricity consumed by these facilities, along with Texas’ extensive interconnection queue—which does not always accurately reflect what will ultimately be constructed—complicates the forecasting of overall demand, Flores explained. “It’s really challenging to ascertain what’s realistic,” he added.
Forecasting summer demand used to be a straightforward task in Texas, but Flores now finds winter forecasting to be more complex. This trend is evident across U.S. power grids, which typically face their greatest challenges during the summer months when air conditioning usage peaks. Recently, a North American regulatory body issued warnings about the risks associated with increasing winter power consumption.
Despite these challenges, the pace of data center development in Texas shows no signs of abating. Flores emphasized the need for contributions from all energy sources to meet this growing demand. During his discussion on Thursday, he even made a pitch to fellow panelist Tim Latimer, CEO of Fervo Energy, a U.S. geothermal startup that harnesses the earth’s heat for power generation and currently lacks field operations in Texas.
“I need to see Tim install about 10 gigawatts of geothermal in Texas next week,” Flores quipped.
Copyright 2026 Bloomberg.
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Electric Reliability Council of Texas Chairman Bill Flores stated on Thursday that several data centers and cryptocurrency miners voluntarily reduced their power consumption during the recent winter storm, which put significant pressure on the state’s electrical grid and others nationwide.
The surge in electricity demand from data centers supporting artificial intelligence and various industrial operations is a key factor driving rapid growth in Texas and beyond. This increase in demand is contributing to higher utility bills for residential customers and forcing grid operators to make challenging decisions regarding power distribution. In response to the storm, Texas reduced its live power-demand forecast by 13% after the event had already begun. Following the deadly grid disaster in 2021, ERCOT has adopted a more cautious approach to securing energy supplies.
“The last image a crypto miner or hyperscaler wants is to have all their lights on and processors running while a school is experiencing power cuts,” Flores remarked during an interview on the sidelines of Baker Hughes’ annual meeting in Florence, Italy. “There’s a group of large energy consumers in Texas that are eager to cooperate and recognize the importance of collaborating with the state’s grid operator.”
Some major technology firms are investing in generation facilities dedicated solely to powering their data centers, rather than contributing to the broader grid. “However, I envision some form of interconnection for all these hyperscalers,” Flores noted. “It will likely be a combination of both approaches.”
The sheer volume of electricity consumed by these facilities, along with Texas’ extensive interconnection queue—which does not always accurately reflect what will ultimately be constructed—complicates the forecasting of overall demand, Flores explained. “It’s really challenging to ascertain what’s realistic,” he added.
Forecasting summer demand used to be a straightforward task in Texas, but Flores now finds winter forecasting to be more complex. This trend is evident across U.S. power grids, which typically face their greatest challenges during the summer months when air conditioning usage peaks. Recently, a North American regulatory body issued warnings about the risks associated with increasing winter power consumption.
Despite these challenges, the pace of data center development in Texas shows no signs of abating. Flores emphasized the need for contributions from all energy sources to meet this growing demand. During his discussion on Thursday, he even made a pitch to fellow panelist Tim Latimer, CEO of Fervo Energy, a U.S. geothermal startup that harnesses the earth’s heat for power generation and currently lacks field operations in Texas.
“I need to see Tim install about 10 gigawatts of geothermal in Texas next week,” Flores quipped.
Copyright 2026 Bloomberg.
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