3 Comments
User's avatar
JF's avatar

Thank you for this wonderful and timely post. I look forward to the next one on tax abatements, since I worked on a bill to remove them. Passed the senate but never got a look in at the house.

Also about to be run over here with transmission lines - the Permian Basin Reliability Plan... with the premise that the Permian needs more power... at least that's the story they are giving - somewhat of a joke I think since they have all the natural assets they need.

Do you think that they will move more in the direction of microgrids rather than these massive projects? Or do they need both? I believe this project was driven years ago by wind and solar - much like the CREZ line.

Thanks for all your work on this.

Expand full comment
Broncho's avatar

Microgrids make a lot more sense in the areas outside of Ector, Crane and Midland county due to the maximum buildout size that can be fully staffed. 2GW data center in Reeves County could require 3-5% of the entire county population just for those locations, doesn't seem feasible to staff that amount of skilled labor from their hiring pool. Those areas will most likely see smaller modular builds that require less throughput on network traffic since there is a lack of redundancy and open access fiber throughout the Permian.

Local government officials have messaged recently that there will be less support for wind and solar projects under abatements moving forward due to lack of economic impact. Time will tell on this but we are definitely seeing a change in messaged sentiment.

Expand full comment
JF's avatar

Thanks - yes your Part 2 makes a lot of sense and gives clarity on the employment and needed infrastructure side. Many people just think electricity needs when they think data centers, but the whole build out necessary is quite a complicated process.

While I have been vigorously opposed to wind, solar and battery abatements, at a school level when it was available and now at a county level, I am glad to hear that counties are coming to their senses on that one.

Abatements for data centers at least make sense. We can just hope the bubble does not burst, but I feel sure they will be around for quite some time, if they can keep up with the technology changes. Smaller corporations will have more instability than the larger ones of course.

Expand full comment