Uploaded August 2026 | Updated September 2026, 3 weeks ago
Dr. Brent Bennett of the Texas Public Policy Foundation (TPPF) testifies before the Texas House State Affairs Committee on the impact of AI data centers on the ERCOT grid and what policy reforms are needed to ensure Texans benefit from the data center boom.
Key points from Dr. Bennett's testimony:
Data centers can be assets to the Texas grid, but only if the right policies are in place. While demand growth can cause short-term price disruptions, increased demand typically drives long-term price reductions through economies of scale. However, Texas faces a serious reliability problem: since Winter Storm Uri, ERCOT has added over 30 gigawatts of solar, 20 GW of energy storage, and 10 GW of wind, but only 4 GW of natural gas. Texas's gas, coal, and nuclear fleet now averages over 30 years old, and the ERCOT market design continues to undervalue reliable, energy-dense generation while subsidizing intermittent sources.
Dr. Bennett also highlights the growing disparity between Texas industrial and residential electricity rates, and raises concerns about tech companies' net-zero commitments driving further wind and solar procurement while socializing those costs onto Texas ratepayers.
TPPF recommends the House revisit reliability reforms from last session and urges the Public Utility Commission to strengthen its firming rules, arguing that if market design is fixed, data center revenue can finance the grid modernization Texas desperately needs.
The Texas Public Policy Foundation’s mission is to promote and defend liberty, personal responsibility, and free enterprise in Texas and the nation by educating and affecting policymakers and the Texas public policy debate with academically sound research and outreach.
Funded by thousands of individuals, foundations, and corporations, the Foundation does not accept government funds or contributions to influence the outcomes of its research.
The public is demanding a different direction for their government, and the Texas Public Policy Foundation is providing the ideas that enable policymakers to chart that new course.
Website: texaspolicy.com
X: twitter.com/tppf
Facebook: facebook.com/texaspolicy
Instagram: instagram.com/texaspolicy
LinkedIn: linkedin.com/company/texas-public-policy-foundation
Dr. Brent Bennett of the Texas Public Policy Foundation (TPPF) testifies before the Texas House State Affairs Committee on the impact of AI data centers on the ERCOT grid and what policy reforms are needed to ensure Texans benefit from the data center boom.
Key points from Dr. Bennett's testimony:
Data centers can be assets to the Texas grid, but only if the right policies are in place. While demand growth can cause short-term price disruptions, increased demand typically drives long-term price reductions through economies of scale. However, Texas faces a serious reliability problem: since Winter Storm Uri, ERCOT has added over 30 gigawatts of solar, 20 GW of energy storage, and 10 GW of wind, but only 4 GW of natural gas. Texas's gas, coal, and nuclear fleet now averages over 30 years old, and the ERCOT market design continues to undervalue reliable, energy-dense generation while subsidizing intermittent sources.
Dr. Bennett also highlights the growing disparity between Texas industrial and residential electricity rates, and raises concerns about tech companies' net-zero commitments driving further wind and solar procurement while socializing those costs onto Texas ratepayers.
TPPF recommends the House revisit reliability reforms from last session and urges the Public Utility Commission to strengthen its firming rules, arguing that if market design is fixed, data center revenue can finance the grid modernization Texas desperately needs.
The Texas Public Policy Foundation’s mission is to promote and defend liberty, personal responsibility, and free enterprise in Texas and the nation by educating and affecting policymakers and the Texas public policy debate with academically sound research and outreach.
Funded by thousands of individuals, foundations, and corporations, the Foundation does not accept government funds or contributions to influence the outcomes of its research.
The public is demanding a different direction for their government, and the Texas Public Policy Foundation is providing the ideas that enable policymakers to chart that new course.
Website: texaspolicy.com
X: twitter.com/tppf
Facebook: facebook.com/texaspolicy
Instagram: instagram.com/texaspolicy
LinkedIn: linkedin.com/company/texas-public-policy-foundation
