A MARTÍNEZ, HOST:
Data centers are flocking to Texas. In the first quarter of this year alone, nearly 200 data centers and other large energy consumers asked to join the state's power grid. As a result, Texas is making it harder to join a grid that is mostly isolated from the rest of the country, Houston Public Media's Natalie Weber reports.
MELISSA BURNETT: Here it is (laughter).
WESLEY BURNETT: How y'all doing?
NATALIE WEBER, BYLINE: Melissa and Wesley Burnett built their home on land that's been in the family for decades. They moved to the rural neighborhood about an hour south of Houston for peace and quiet. But then a data center moved in next door to them, bringing a constant distant hum of noise.
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WEBER: Here's how they describe the sound.
M BURNETT: Like a jet that just hasn't taken off or a crawfish cooker.
W BURNETT: We just never get any crawfish or go on vacation. It's just the noise.
WEBER: Texas is facing an influx of data centers and other large energy consumers like cryptocurrency miners. They've requested five times the amount of energy used to power the entire state during record-breaking demand. That's a concern for the state's grid operators who are trying to make sure they have enough electricity to avoid blackouts during high demand in the summer and winter. The state's energy regulators have set stricter requirements for projects wanting to come to Texas to determine what infrastructure is needed to connect them to the grid. And regulators are navigating a recent directive from Texas governor Greg Abbott to prevent the costs of that infrastructure from being passed on to consumers.
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UNIDENTIFIED PERSON #1: With that, I'll entertain a motion to approve the proposed order.
UNIDENTIFIED PERSON #2: So moved.
UNIDENTIFIED PERSON #3: Second.
UNIDENTIFIED PERSON #1: I have a motion to second. All those in favor say aye.
UNIDENTIFIED PERSON #2: Aye.
UNIDENTIFIED PERSON #1: Opposed? Motion prevails.
WEBER: The state's Public Utility Commission approved new standards this month. Those standards will also require data center operators to post a financial security of at least $3.75 million, though the exact amount depends on the size of the project. Pablo Vegas is the president and CEO of the state agency that operates the Texas power grid. At an early June meeting, he praised the new requirements.
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PABLO VEGAS: We potentially could be solving a national issue on how to do this in a way that can be done reliably, stably.
WEBER: Dan Diorio, a vice president with the Data Center Coalition, says some projects looking to join the grid have expressed concerns that the regulations will be overly burdensome.
DAN DIORIO: We need to ensure that we have a balance of reasonable barriers to entry that helps deter speculation but not making this so onerous.
WEBER: Beth Garza previously served as the independent watchdog for Texas power grid operators and says these new rules will not change much on a local level.
BETH GARZA: Those kinds of local building and local zoning land use issues, there's no doubt that there will be people affected by that.
WEBER: Instead, the new regulations are meant to protect everyday consumers from fronting the cost of data centers looking to join the grid, especially if they are never built. Garza says most Texans may not notice much of an effect from changes to the state's rules.
GARZA: Those of us that have been here and pay our electric bills shouldn't notice the change at all.
WEBER: And with Texas facing record-breaking demand on its grid, she says that's the goal. For NPR News, I'm Natalie Weber in Houston.
(SOUNDBITE OF TALKDEMONIC'S "WHITE GYMNASIUM") Transcript provided by NPR, Copyright NPR.
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