AI computing power provider CoreWeave’s data center in Denton, TX, will consume as much power as the rest of the city combined. (Bloomberg)
What’s happening: CoreWeave’s expansion in Denton, now repurposed for OpenAI workloads, is expected to double the city’s power demand and max out its transmission headroom. The city is building new infrastructure and passing the costs to CoreWeave.
Why it matters: Denton’s deal is a microcosm of a bigger grid challenge playing out across the state. ERCOT has warned that Texas could hit negative reserve margins by next year, with data centers the largest source of new demand.
By the way: CoreWeave plans to invest up to $6B to build out a data center in Lancaster, PA. It’s targeting 100 MW of capacity, which could expand to 300 MW in the future.