Key Takeaways

AI data centers now drive most of Texas’s massive new power requests, far surpassing bitcoin miners.
Their nonstop, high-reliability energy needs are straining a grid built for more flexible users.
Regulators are tightening reviews to curb speculative projects and prevent future power shortages.

AI’s Soaring Power Demand

Texas is facing a new kind of energy challenge. This time, it’s not extreme weather or a surge in bitcoin mining. Instead, artificial intelligence (AI) data centers are rapidly becoming the biggest users of electricity in the state.

According to a report by the MinerMag, ERCOT, the group that manages Texas’s power grid, says large power requests have jumped to 226 gigawatts, almost four times more than last year. About 73% of this demand comes from AI companies, not bitcoin miners. This sudden rise is forcing Texas to rethink how it plans for electricity.

Large load requests by project type — Ercot

So far in 2025, companies have already submitted 225 major power requests, more than the total number filed from 2022 to 2024. Many new AI campuses need over one gigawatt of power each, similar to the output of a large power plant.

These facilities run nonstop and require constant electricity, unlike bitcoin miners, who can turn off during peak hours. On the supply side, Texas has nearly 2,000 proposals for new power plants, adding up to 432 gigawatts.

But most of these new projects are solar and battery storage. While helpful, they cannot provide steady 24/7 power, which AI centers must have. This gap between demand and reliable supply is raising concerns about future shortages.

Because of this, regulators are creating new rules. Any customer asking for 75 megawatts or more will now go through as a “special handling” case. This helps officials filter out unrealistic or speculative “phantom loads” projects so the grid doesn’t get overwhelmed.

ERCOT is also reviewing more than twice as many transmission projects as last year to strengthen the grid as quickly as possible.

A few years ago, bitcoin miners were the biggest new power users in Texas. They even helped stabilize the grid by shutting down during peak demand and turning back on when power surplus was available.

One study by Digital Assets Research Institute estimated bitcoin mining saved the state $18 billion by stabilizing the power grid.

But today, AI makes much more money per unit of electricity than bitcoin mining. Because of this, many mining companies, such as Riot, IREN, CleanSpark, TeraWulf, Bit Digital, MARA Holdings, Cipher Mining, Bitfarms, and Core Scientific, are switching to AI and high-performance computing (HPC). Some companies have announced more than $43 billion in AI and HPC deals.

Meltem Demirors of Crucible Capital explained the shift this way:

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“Bitcoin mining created the blueprint for the AI compute boom and the modern data center. They have found that their cost of capital is much lower if they go into the AI narrative. They have the powered shell, they’re ripping out the [mining machines], and their tenant is bringing the GPUs.”

In other words, mining companies already have the buildings and power connections. Now they’re replacing mining machines with AI hardware.

Not everyone believes miners can convert their facilities easily. Fred Thiel, CEO of MARA, said AI clients need almost perfect reliability: “You have to have power 99.99999 percent of the time.” Mining sites were not originally built for this level of uptime. Still, due to market pressure, many companies are moving forward with the transition.

That’s why analysts believe the mismatch in electricity-use patterns could create problems in the future.