Why CPS Energy says power demand is expected to surge in San Antonio

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CPS Energy anticipates a significant surge in power demand in San Antonio, projecting an increase of at least one-third due to the influx of data centers. Currently, there are 2 gigawatts of data centers awaiting connection, with an additional 8.8 gigawatts in feasibility studies and 9.5 gigawatts showing early interest. Texas Governor Greg Abbott's pro-business stance has attracted the data center industry, leading to a forecasted load demand of nearly 150 gigawatts by the end of the decade, compared to CPS's current peak of around 5.5 gigawatts.

As CPS navigates this rapidly evolving landscape, it faces challenges in updating its long-term generation plan, which was last approved in January 2023 and did not account for the swift arrival of large loads like AI-driven data centers. The utility is exploring ways to improve load predictions and is forming agreements to recover costs if projects do not utilize the energy they requested. Additionally, CPS is committed to reducing emissions and transitioning away from coal, despite supply chain constraints delaying new gas plants. The utility's leadership emphasizes the need for rate increases or alternative funding methods to meet growing generation needs while managing the financial impact on customers.