Good morning. Data centers failed voltage tests in Texas this week. Most new ones are being planned in drought zones. And the political blowback is landing on governors who thought they could stay in the middle. Let's dig in.
Top Stories
TEXAS FLAGS DATA-CENTER GRID RISKS BEFORE SUMMER PEAK
Reuters
ERCOT says several large data-center and crypto loads failed voltage tests, putting reliability risk directly into the summer-demand story.
DATA-CENTER POWER USE COULD JUMP 50%
Business Insider
A permit analysis estimates new U.S. data centers could consume 224.3 TWh to 358.8 TWh annually if built, a sharp increase from the previous year.
AI DATA CENTERS PUSH INTO DROUGHT-HIT LAND
Guardian US
Most new U.S. AI data centers are planned for drought-stressed areas, adding water risk to the power and siting backlash.
DATA-CENTER BACKLASH TESTS DEMOCRATIC GOVERNORS
E&E News
Public pressure over AI infrastructure is forcing moderate Democratic governors to defend new rules while critics inside the party harden against the buildout.
ENERGY BILL VOTERS MOVE INTO THE 2026 FIGHT
Axios
League of Conservation Voters Victory Fund is framing rising energy costs as an election issue, tying ratepayer pressure directly to campaign messaging.
Power & Grid
FERVO RUNS INTO WESTERN TRANSMISSION CONSTRAINTS
Utility Dive
Analysts say grid limits could shape Fervo Energy's geothermal growth strategy, including behind-the-meter options as transmission access becomes the bottleneck.
KANSAS LAWMAKERS FIGHT NO-BID TRANSMISSION PLAN
Kansas Reflector
Two Kansas legislators are asking federal regulators to protect competitive bidding as utilities seek faster paths for major transmission projects.
TRUMP WIND FREEZE HITS ILLINOIS PROJECTS
WNIJ / Northern Public Radio
Billions of dollars in wind projects are on hold in Illinois and around the country as federal permitting decisions slow the buildout.
CLEAN ENERGY SPENDING NEARLY DOUBLES FOSSIL FUELS
Forbes
New IEA data shows clean-energy investment pulling ahead globally, even as U.S. policy and grid bottlenecks complicate the buildout.
NEXTERA-DOMINION MERGER RESHAPES NEW ENGLAND NUCLEAR
Connecticut Mirror
The proposed merger would put New England's nuclear fleet under one large utility structure, raising market-power and reliability questions for the region.
Data Centers
AI ELITES CELEBRATE AS PUBLIC BACKLASH BUILDS
NBC News
Washington's AI gala gives the issue a clean contrast between insider enthusiasm and public frustration over data centers, chatbots and social costs.
STATES POUR TAX BREAKS INTO DATA CENTERS
Newsweek
New data maps where states are subsidizing data-center growth, sharpening the debate over who benefits from the buildout.
PENNSYLVANIA GOP SEEKS DATA-CENTER ENERGY RULES
Pennsylvania Capital-Star
A Republican bill would codify Trump administration principles on electricity markets and data centers as Gov. Josh Shapiro pushes his own standards.
AI BOOM RUNS ON BILLIONS AND UNPROVEN RETURNS
Guardian US
The capital-spending surge behind AI faces still-uncertain returns, even as demand for more compute, power and land keeps growing.
AI FACTORIES RUN INTO THE GRID BOTTLENECK
Forbes
AI data-center growth is running into transformers, transmission and grid-scale infrastructure as the next constraint on the buildout.
Stat of the Day
358.8 TWh
Upper-end annual power estimate for permitted U.S. data centers if built
For scale, that's roughly 8% of all U.S. electricity — more than Florida generates in a year. Even the low end of the range, 224.3 TWh, would mark a roughly 50% jump.
Business Insider analysis ↗