Texas is experiencing a major transformation in its power consumption trends as artificial intelligence (AI) data centers become the largest drivers of new energy demand—overtaking the load once dominated by Bitcoin mining operations. Reports from Cointelegraph indicate that the Electric Reliability Council of Texas (ERCOT), which oversees the state’s standalone power grid, is managing an unprecedented surge in requests for large-scale power connections.
ERCOT’s queue for major load projects has climbed to 226 gigawatts, and AI-related facilities now account for roughly 73% of these new demands. This year alone, developers have filed 225 large-load applications, while ERCOT is also reviewing 1,999 proposed generation projects totaling 432 gigawatts. Despite this surge in planned generation, demand is outgrowing supply capacity. Most of the upcoming generation projects are solar and battery-based—resources that cannot deliver the constant, round-the-clock power required by AI computing centers. This growing mismatch is raising concerns about grid stability and future infrastructure needs.
To address the looming strain, state regulators are introducing new policies. One proposal would classify any customer seeking 75 megawatts or more as requiring special regulatory handling. ERCOT has also increased the number of transmission upgrades under consideration to better support the rising load.
Industry analysts note a sharp contrast with the earlier wave of Bitcoin miners who once dominated Texas’s high-energy usage. During peak grid stress, many mining companies voluntarily reduced operations, helping stabilize the network. Research from the Digital Asset Research Institute suggests these curtailments saved the state an estimated $18 billion in energy costs.
The sector is now shifting gears as mining companies and digital asset operators pivot toward AI infrastructure to meet soaring demand for GPU-based computing. One notable example is Mike Novogratz’s Galaxy, which recently secured $460 million to convert a former Texas Bitcoin mining site into a large-scale AI data center—reflecting the broader industry move toward AI-focused power usage.
