The Data Center Boom Is Reshaping Texas — and Every Business Needs to Understand Why

Driven by the rapid rise of artificial intelligence, Texas is experiencing an unprecedented data center boom, with capacity projected to exceed 40 gigawatts by 2028. The massive scale of these facilities—some of which are designed to consume a gigawatt of electricity—is putting significant strain on the state's power grid and water resources. In response, the Texas Legislature passed Senate Bill 6, granting grid operator ERCOT the authority to remotely disconnect data centers during emergencies and requiring facilities built after December 31, 2025, to install remote-disconnect systems.