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Texas Grid Says Peak Demand Could Nearly Double by 2032 as Data Centers Surge

Regulators say the forecast forces a push for more round-the-clock power plus market and incentive changes to avoid future shortages.

Overview

  • ERCOT told state lawmakers that peak demand could reach about 175,000 megawatts by 2032, driven in large part by roughly 65 gigawatts of new large loads tied to data centers.
  • The grid set back-to-back summer records, topping 91,308 megawatts on July 22, and met those peaks without outages because of heavy daytime solar output and nearly 12 gigawatts of battery discharge.
  • Officials warn solar and batteries ease daytime stress but may not cover late-evening and overnight demand, so regulators are pushing for more dispatchable, round-the-clock capacity such as natural gas plants.
  • ERCOT and the Public Utility Commission paused official long-term forecasts after an April projection of 367,790 megawatts was judged implausible and are rebuilding forecasting methods to better account for very large loads.
  • Lawmakers are debating changes to incentives and the $10 billion Texas Energy Fund as analysts warn rapid demand growth could raise consumer bills and require clearer market signals to spur new firm generation.