CenterPoint braces for rising power demand from Foxconn’s Houston AI projects with Apple and Nvidia

AI generated summary

CenterPoint Energy is preparing for a significant increase in power demand as Foxconn plans to develop artificial intelligence hardware for Apple and Nvidia in Houston. The expansion is expected to create hundreds of jobs and involve an investment of $420 million. While the exact electricity requirements for Foxconn's AI projects remain unclear, estimates suggest that the demand could exceed 100 megawatts, enough to power approximately 25,000 homes at peak demand. CenterPoint is in discussions with Foxconn regarding necessary infrastructure upgrades to accommodate this growth.

Foxconn's energy needs could escalate rapidly as AI technology advances, with each new generation of Nvidia's chips requiring about 50% more energy than its predecessor. Although Foxconn is not constructing a data center in Houston, it will be assembling and testing supercomputers that require substantial energy during testing phases. CenterPoint is evaluating whether to serve Foxconn through local distribution or high-voltage transmission systems, with potential upgrades including enhanced substations and new power lines. The costs of these upgrades and how they will be shared among stakeholders remain to be determined, highlighting the critical role of energy infrastructure in the future of AI development.