Texas lawmakers are debating a new bill that could have a big impact on the state’s power grid and its growing tech industry. The legislation, known as SB 6, is a priority for Lt. Gov. Dan Patrick and aims to impose stricter guidelines on large energy consumers, defined as those using 75 megawatts of power or more. Supporters argue that these measures are necessary to protect the state’s independent power grid, especially after the devastating Winter Storm Uri in 2021, which left many Texans without power for days.
If passed, SB 6 would require large facilities to have backup generators and pay a hefty $100,000 screening fee for state approval. Each facility would also need to install a remote "kill switch" that regulators could use to cut power in emergencies. Republican lawmakers believe these rules will help ensure the grid remains stable during high demand periods.
However, critics warn that the new regulations could hinder Texas’s ability to compete in the rapidly evolving field of artificial intelligence (AI). They point to the Stargate Project, a $500 billion initiative backed by the Trump administration to boost U.S. leadership in AI. Texas is already a key player in this project, with ten data centers under construction in Abilene. Critics like Vance Ginn, president of Ginn Economic Consulting, argue that the added regulations could deter smaller companies from entering the market, potentially leading to higher costs for technology and energy.
Ginn expressed concern that while major tech firms involved in Stargate might not be significantly affected, the new rules could create barriers for smaller competitors. He believes this could stifle innovation and economic growth in the long run. A Trump administration official echoed this sentiment, stating that anyone opposing the growth of American energy would face consequences.
Lt. Gov. Patrick, however, remains optimistic. He insists that Texas will continue to lead in technology and energy, dismissing concerns about the bill’s impact on the state’s AI ambitions. He stated that the state is working closely with industry stakeholders to ensure Texas remains a top destination for AI, data centers, and cryptocurrency.
As the debate continues, the future of Texas’s power grid and its tech industry hangs in the balance. Lawmakers will need to weigh the need for grid stability against the potential risks to economic growth and innovation in the AI sector.