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FILE – Demand for data centers, AI could test Texas power grid
Experts say the Texas power grid is expected to see a spike in demand in the coming years and preparations need to be made now to keep up.
SHERMAN, Texas - A new power plant is set to be built in North Texas as power-hungry data centers spread across the state.
What we know:
A loan from the Texas Energy Fund is helping pay for the construction of Rayburn Electric Cooperative’s newest natural gas-fired power plant in Sherman, Texas, according to the Texas governor’s office.
The 570-megawatt (MW) plant will be built next to an existing facility run by the cooperative. That’s enough energy to power a city of approximately 500,000 people.
Smokestacks of a power plant are seen in April 2025. (Getty Images)
What they're saying:
"As our region continues to grow, investments in safe, reliable, and affordable power remain critical," said Rayburn Electric Cooperative President and CEO David Naylor. "We are thankful to Governor Abbott, our legislators, and the PUCT for their continued leadership and focus on strengthening the ERCOT grid. We take great pride in being the first cooperative to qualify for and achieve funding under the Texas Energy Fund."
Big picture view:
The Texas Tribune reported Monday that there are at least 248 planned data centers set to open in Texas by 2030. Most of those are planned in urban and suburban counties. One project in Abilene will need up to 1,200 MW of electricity. Another near Amarillo could need up to 11,000 MW of power.
By the numbers:
According to officials, the plant will cost about $685 million to build. The $411-million loan from the Texas Energy Fund has a term of 20 years at an interest rate of 3%.
What's next:
The plant is scheduled to come online in 2028.
The Source: Information in this story came from the Texas governor's office, the Texas Tribune and previous FOX Local reporting.