The Texas energy grid will get some major upgrades in West Texas to better ready the grid for data centers and oil and natural gas development after the approval of a U.S. Department of Energy loan.
The DOE approved a loan up to $3.26 billion to AEP Texas that will fund around 100 projects across the state.
Projects will include rebuilding existing energy transmission lines and the building of new lines spanning approximately 2,800 miles.
DOE officials said the projects will double the power capabilities in the region and help meet the growing electric demands of data centers and oil and natural gas development in the Permian Basin.
What they're saying:
"This investment will modernize Texas’ electric grid, support the energy needed for AI, advanced manufacturing, the Permian Basin, and help keep electricity costs down for Texans," U.S. Energy Secretary Chris Wright said.
The agency claims the improvements will result in around $685 million in energy cost savings over the next 30 years.
Texas wants more regulation on data centers
The announcement comes as Texans grapple with the expansion of data centers across the state.
Earlier this month, Gov. Greg Abbott called for a prohibition of data center construction in rural neighborhoods. The governor previously called for data centers to provide their own power when connecting to the state's power grid and to operate closed-loop water systems.
The governor has also called on lawmakers to repeal sales tax exemptions and "other outdated or unnecessary incentives" for data centers. Data centers would also be required to consider the communities by reducing their impact through measures such as reducing noise.
The Source: Information in this article comes from the U.S. Dept. of Energy and previous FOX Local reporting.