ERCOT plans to build a “super highway” of new transmission lines to boost grid reliability. Photo via Getty Images

The Electric Reliability Council of Texas, which manages the electric grid for 90 percent of Texans, is undertaking a $9.4 billion project to improve the reliability and efficiency of statewide power distribution. The initiative comes as ERCOT copes with escalating demand for electricity from data centers and cryptocurrency-mining facilities.

The project, approved Dec. 9 by ERCOT’s board, will involve building a 1,109-mile “super highway” of new 765-kilovolt transmission lines. One kilovolt equals 1,000 volts of electricity.

According to the Hoodline Dallas news site, the $9.4 billion project represents the five- to six-year first phase of ERCOT’s Strategic Transmission Expansion Plan (STEP). Hoodline says the plan, whose price tag is nearly $33 billion, calls for 2,468 miles of new 765-kilovolt power lines.

STEP will enable ERCOT to “move power longer distances with fewer losses,” Hoodline reports.

Upgrading the ERCOT grid is a key priority amid continued population growth in Texas, along with the state’s explosion of new data centers and cryptocurrency-mining facilities.

ERCOT says about 11,000 megawatts of new power generation capacity have been added to the ERCOT grid since last winter.

But in a report released ahead of the December board meeting, ERCOT says it received 225 requests this year from large power users to connect to its grid — a 270 percent uptick in the number of megawatts being sought by mega-users since last December. Nearly three-fourths (73 percent) of the requests came from data centers.

Allan Schurr, chief commercial officer of Houston-based Enchanted Rock, a provider of products and services for microgrids and onsite power generation, tells Energy Capital that the quickly expanding data center industry is putting “unprecedented pressure” on ERCOT’s grid.

“While the state has added new generation and transmission capacity, lengthy interconnection timelines and grid-planning limitations mean that supply and transmission are not keeping pace with this rapid expansion,” Schurr says. “This impacts both reliability and affordability.”

For families in Texas, this could result in higher energy bills, he says. Meanwhile, critical facilities like hospitals and grocery stores face a heightened challenge of preventing power outages during extreme weather or at other times when the ERCOT grid is taxed.

“I expect this trend to continue as AI and high-density computing grow, driving higher peak demand and greater grid variability — made even more complex by more renewables, extreme weather and other large energy users, like manufacturers,” Schurr says.

According to the Pew Research Center, data centers accounted for 4 percent of U.S. electricity use in 2024, and power demand from data centers is expected to more than double by 2030. Data centers that support the AI boom make up much of the rising demand.

In September, RBN Energy reported more than 10 massive data-center campuses had been announced in Texas, with dozens more planned. The Lone Star State is already home to roughly 400 data centers.

“Texas easily ranks among the nation’s top states for existing data centers, with only Virginia edging it out in both data-center count and associated power demand,” says RBN Energy.

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Houston scientists' breakthrough moves superconductivity closer to real-world use

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University of Houston researchers have set a new benchmark in the field of superconductivity.

Researchers from the UH physics department and the Texas Center for Superconductivity (TcSUH) have broken the transition temperature record for superconductivity at ambient pressure. The accomplishment could lead to more efficient ways to generate, transmit and store energy, which researchers believe could improve power grids, medical technologies and energy systems by enabling electricity to flow without resistance, according to a release from UH.

To break the record, UH researchers achieved a transition temperature 151 Kelvin, which is the highest ever recorded at ambient pressure since the discovery of superconductivity in 1911.

The transition temperature represents the point just before a material becomes superconducting, where electricity can flow through it without resistance. Scientists have been working for decades to push transition temperature closer to room temperature, which would make superconducting technologies more practical and affordable.

Currently, most superconductors must be cooled to extremely low temperatures, making them more expensive and difficult to operate.

UH physicists Ching-Wu Chu and Liangzi Deng published the research in the Proceedings of the National Academy of Sciences earlier this month. It was funded by Intellectual Ventures and the state of Texas via TcSUH and other foundations. Chu, founding director and chief scientist at TcSUH, previously made the breakthrough discovery that the material YBCO reaches superconductivity at minus 93 K in 1987. This helped begin a global competition to develop high-temperature superconductors.

“Transmitting electricity in the grid loses about 8% of the electricity,” Chu, who’s also a professor of physics at UH and the paper’s senior author, said in a news release. “If we conserve that energy, that’s billions of dollars of savings and it also saves us lots of effort and reduces environmental impacts.”

Chu and his team used a technique known as pressure quenching, which has been adapted from techniques used to create diamonds. With pressure quenching, researchers first apply intense pressure to the material to enhance its superconducting properties and raise its transition temperature.

Next, researchers are targeting ambient-pressure, room-temperature superconductivity of around 300 K. In a companion PNAS paper, Chu and Deng point to pressure quenching as a promising approach to help bridge the gap between current results and that goal.

“Room-temperature superconductivity has been seen as a ‘holy grail’ by scientists for over a century,” Rohit Prasankumar, director of superconductivity research at Intellectual Ventures, said in the release. “The UH team’s result shows that this goal is closer than ever before. However, the distance between the new record set in this study and room temperature is still about 140 C. Closing this gap will require concerted, intentional efforts by the broader scientific community, including materials scientists, chemists, and engineers, as well as physicists.”

Energy expert: What record heat and extended summers mean for Texans

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Earth’s third-warmest year on record occurred in 2025, reinforcing a decades-long pattern of rising global temperatures. This warming trend is increasingly reflected in regional weather patterns across the United States, particularly in Texas, where hotter summers, prolonged droughts, and heavier rainfall events are becoming more common.

A 2024 report from Texas A&M University highlights how these shifts are already reshaping weather conditions across the Lone Star State. The assessment analyzes climate and weather data from 1900 through 2023 and projects likely trends through 2036.

Its findings suggest that extreme weather in Texas is not only increasing but also becoming more hazardous for communities, infrastructure, and the economy.

A Rise in Extreme Heat
One of the most dramatic changes is the increasing frequency of extreme heat events. Summer temperatures in Texas have climbed back to levels not seen since the early 20th century, and projections suggest they will exceed those historic highs within the next decade.

Triple-digit temperatures are becoming far more common. In the 1970s and 1980s, most parts of Texas experienced relatively few days above 100°F in a typical year. By 2036, those days are expected to occur about four times as often, especially across North, Central, and West Texas.

Houston reflects that broader trend. Five of the 10 years with the most 100-degree days on record in the city have occurred since 2000, according to records dating back to the late 1880s.

The summer of 2023 was Houston’s hottest on record, surpassing even the historic heat of 2011. While short-term cold snaps still occur, climate data suggests extreme summer heat will become more frequent in the years ahead.

Heat waves are also starting earlier in the year and lasting longer. As of 2024, the average length of heat-wave season in the United States has increased by 46 days since the 1960s. Their frequency has also increased steadily, rising from an average of two heat waves per year in the 1960s to about six per year in the 2010s and 2020s.

Energy Grid Strain
Heat waves occurring earlier in the year and more intensely place increasing pressure on the state’s electricity system. When temperatures spike early in the summer, households and businesses simultaneously increase air-conditioning use, pushing electricity demand close to record levels.

In recent summers, record-breaking electricity demand has repeatedly tested grid capacity. Energy experts warn that if heat extremes continue to intensify, maintaining grid reliability will require expanded generation capacity, improved energy efficiency, and greater integration of renewable energy and battery storage. Fortunately, Texas has already made strides in these areas of concern.

Texas continues to lead the nation in clean energy adoption and grid modernization, particularly in wind and solar power. With more than 40,000 megawatts (MW) of wind capacity, the state ranks first in the country in wind-powered electricity generation, supplying up to 35% when blowing and as low as 0%. Much of this growth was driven by the state’s Renewable Portfolio Standard (RPS), which requires utility companies to develop renewable energy in proportion to their market share. The policy originally set a goal of generating 10,000 MW of renewable capacity by 2025, but Texas surpassed this target years ahead of schedule due to rapid investment and expansion.

Solar energy is also growing quickly. Texas has officially overtaken California as the country’s. leader in utility-scale solar, according to recently released data from the U.S. Energy Information Administration. With over 37 GW of capacity, Texas now leads in new solar installations, supported by large-scale solar farm development and favorable policies that continue to diversify the state’s energy mix.

To build a more resilient and cost-effective power system, Texas is working to integrate wind and solar generation while strengthening grid reliability. Efforts include regulatory reforms, mandates for improved power infrastructure, and the deployment of renewable energy storage solutions. A recent report from the Solar Energy Industries Association indicates that Texas is on track to surpass California this year as the nation’s leader in energy storage capacity, driven largely by the rapid growth of battery storage facilities across the state. Alongside renewable expansion, the state also added 3,410 MW of natural gas–fueled power in 2024 to support growing electricity demand.

Economic Consequences
Extreme heat also has measurable economic impacts. For every 1-degree increase in the average summer temperature, Texas’ annual nominal GDP growth rate slows by about 0.4 percentage points. Because Texas already experiences hotter summers than most of the country, rising temperatures affect the state’s economic growth about twice as much as they do in the rest of the United States. Additional warming compounds the strain on productivity, infrastructure, and energy costs.

Some industries are more sensitive to heat than others. Construction, agriculture, manufacturing, and outdoor services often experience productivity losses during prolonged heat waves.

The effects were already visible during the record-breaking summer of 2023, when cities such as Houston, Dallas, and El Paso experienced prolonged stretches of triple-digit temperatures. Surveys conducted by the Federal Reserve Bank of Dallas found that roughly one-quarter of businesses responding to the Texas Business Outlook Surveys reported reduced revenue or production because of the heat.

The hardest-hit sector was leisure and hospitality, where outdoor activities and tourism often decline during extreme temperatures. However, businesses across manufacturing, retail, and services also reported disruptions.

Environmental and Infrastructure Stress
In addition to heat, there are growing risks related to drought, wildfire conditions, and urban flooding.

Extended heat waves tend to worsen drought conditions by increasing evaporation and reducing soil moisture. Lower water levels in lakes and reservoirs can lead to water restrictions for cities and agricultural producers, especially in regions that rely heavily on surface water supplies.

Dry conditions also increase the likelihood of wildfires, particularly across West Texas and the Hill Country. Strong winds, dry vegetation, and extreme heat can quickly turn small fires into fast-moving blazes that threaten homes, infrastructure, and ecosystems.

At the same time, Texas is experiencing an increase in severe rainfall events, which can overwhelm drainage systems in rapidly growing urban areas. Cities with large amounts of pavement and development are especially vulnerable to flash flooding when heavy rain falls in short bursts.

Along the Gulf Coast, rising sea levels are adding another layer of risk. Communities near Galveston Bay and other low-lying coastal areas face increasing threats from storm surge and high-tide flooding.

Preparing for a Hotter Future
Climate experts emphasize that over the next decade, Texans are likely to face more frequent heat waves, higher energy demand, and greater environmental stress.

Adapting to these changes will require a range of responses, including strengthening infrastructure, expanding water management strategies, improving urban planning, and enhancing emergency preparedness for extreme heat and flooding.

While the challenges are significant, understanding these trends now gives policymakers, businesses, and communities time to prepare. As the state’s population and economy continue to grow, resilience to extreme weather is an increasingly important priority for Texas in the years ahead.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

Woodside Energy names new CEO with sustainability focus

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Woodside Energy has officially named Elizabeth Westcott as its new managing director and CEO.

Westcott has served as the company's acting CEO since Meg O'Neill stepped down in December 2025. Woodside is headquartered in Australia with its global operations based in Houston.

Before joining Woodside as executive vice president of Australian Operations in 2023, Westcott served as COO at EnergyAustralia. She has also held leadership roles at ExxonMobil and Adriatic LNG.

At Woodside, she has overseen the $12.5 Scarborough Energy Project, which the company says is expected to be one of the lowest-carbon-intensity sources of LNG, as well as other major projects and initiatives.

“My focus as CEO is on sustainable value creation for Woodside shareholders, operational excellence and disciplined execution of our growth projects," Westcott said in a news release. “I look forward to working closely with the Board and Woodside’s strong leadership team to continue building a leading global energy company that delivers long-term value for shareholders, underpinned by a consistent focus on sustainability and high performance.”

Woodside Chair Richard Goyder added that Westcott was the top choice for the role.

“Liz’s proven track record of outstanding strategic leadership and disciplined delivery distinguished her as the Board’s top candidate for this role," Goyder said. “Liz’s extensive industry experience and strategic vision will be invaluable in leading Woodside at this significant moment in its history.”

Earlier this month, Westcott spoke on how sustainability is a priority for Woodside.

"Put simply, sustainable business is good business ... Because strong sustainability performance is not only the right thing to do. It also drives long-term value by helping to de-risk our business, secure future opportunities and support a compelling value proposition for investors," she said in her 2026 sustainability briefing.

Westcott called attention to the company's Beaumont New Ammonia project. The company acquired the Texas-based clean ammonia project in 204 for $2.35 billion. Production of lower‑carbon ammonia was initially expected sometime this year, but Westcott shared that delivery has been pushed back due to construction delays.

Read Westcott's full suitability briefing here.