Texas Data Centers Under Threat

“Connection costs are a legitimate concern, but they still do not justify panic. A large new facility can require substation work, transmission upgrades, and interconnection investments. If those costs are dumped onto ordinary customers, that is a problem. But the fix is not to let government decide which projects deserve power. That means better pricing, faster approvals, more direct contracting, more private generation, and more room for microgrids or other parallel systems.

This is where the Cato paper is especially useful. It argues for private electricity grids and consumer-regulated arrangements that allow electricity-intensive users to secure power without forcing everyone else to subsidize them. That is a much better path than trying to ration demand from the Capitol. 

Responsibility should follow decisions. If a company wants to build a power-hungry facility, then it should have strong incentives to contract, generate, conserve, and invest accordingly. Markets can handle that better than hearings can.”

https://vanceginn.substack.com/p/texas-data-centers-under-threat