AI Data Centers Overtake Bitcoin Miners in Texas Power Demand
Texas is experiencing a new wave of electricity demand led by artificial intelligence data centers, with the Electric Reliability Council of Texas (ERCOT) reporting a record increase in large-load interconnection requests. AI facilities now account for the majority of these requests, overtaking Bitcoin miners and influencing the grid’s planning and reliability outlook, according to ERCOT’s System Planning and Weatherization Update cited by The Miner Mag.
ERCOT, which operates the state’s independent power grid and provides service to about 90% of Texans, said its large-load interconnection queue has grown to 226 gigawatts of new requests, with roughly 73% associated with AI data centers.
So far this year, developers have submitted 225 large-load requests. On the supply side, ERCOT is reviewing 1,999 generation proposals totaling 432 GW, The Miner Mag reported.
Demand growth is outpacing supply additions. While the generation pipeline is substantial, it is concentrated in solar and battery projects, which do not provide the continuous power profile that AI data centers require. This mismatch is creating future reliability and investment considerations.
State regulators are moving to adjust. New rules under development would classify any customer seeking 75 MW or more as a “special handling” case, and ERCOT has more than doubled the number of transmission projects under review, The Miner Mag noted.
Impact on Bitcoin miners
The Miner Mag contrasted the current AI-driven expansion with the earlier growth from Bitcoin (BTC) miners, indicating that today’s emerging grid constraints are being driven primarily by AI, not crypto.
Bitcoin miners were previously among the largest new power users in Texas. Their participation was often supportive of the grid: miners regularly curtailed operations during peak demand and, according to a January study by the Digital Asset Research Institute, helped improve grid stability and saved the state an estimated $18 billion.
Source: Pierre Rochard
The sector is shifting as many miners and digital asset operators repurpose infrastructure for AI computing to meet surging GPU demand. Recent activity includes Mike Novogratz’s Galaxy, which raised $460 million to convert a former Texas Bitcoin mining site into a large-scale AI data center.
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