AI Data Center Expansion in Texas Raises Power Grid Strain Concerns
A new 390-megawatt AI data center in Denton, Texas, operated by CoreWeave and used by OpenAI for ChatGPT, is projected to double the city's electricity demand by 2030 and strain an already fragile power grid, potentially raising electricity costs for local residents and increasing risk of outages.
What happened
OpenAI is developing a massive data center in Denton, Texas, approximately 40 miles north of Dallas, projected to consume 390 megawatts of power by 2030. The site is technically owned by Core Scientific, a bitcoin mining company that pivoted to renting data centers for AI companies, which is being acquired by CoreWeave in a $9 billion sale.
The data center is designed to provide round-the-clock power consumption to keep ChatGPT and OpenAI's developer API available. OpenAI had to limit the release of two major features in early 2025 because it underestimated the required computing power.
Reported impact
The data center is projected to double Denton's electricity needs by 2030. The city's nearly 160,000 residents, including 55,000 college students, could be competing for power supply once the facility is operational, and electricity bills could rise if demand outpaces supply.
The facility threatens to strain Texas's already-fragile electrical grid, with similar data center projects cropping up across the state at a fast pace.
Index analysis
The power consumption required (390 megawatts) is significantly larger than a typical data center and equivalent to the electricity needs of an entire city. Local officials are scrambling to prepare for the increased load by constructing new grid infrastructure.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.