Who Pays for the High-Powered Grid that Data Centers Need?

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The true scale of prospective projects that want to plug into the Texas grid is hard to hold in your head. As of August 3, the Texas governor’s office put the figure at more than 474 gigawatts of requests to connect, more than five times the grid’s record peak demand, and said roughly 90 percent of those requests are data centers. Many of those projects may never connect. Against that backdrop, the Public Utility Commission of Texas (PUC) published a proposal on July 24 that would place substantial payment obligations on the large customers seeking that capacity. It is a serious piece of work, but one important part of its scope remains unsettled.

On August 3, Governor Greg Abbott then directed the PUC and the Electric Reliability Council of Texas (ERCOT) to audit every data center moving through the interconnection process and said the audit must be finished before any project moves forward. Among other things, it asks the extent to which data centers are “paying their own way.” That question is aimed at tax breaks, grants, and public assistance. It does not reach who pays for the grid work needed to serve these projects. (That inquiry is in the proposed rulemaking.) In June, the governor told the PUC to require data centers to fully fund the electric infrastructure needed to serve them. How far that reaches is the open question.

Start with what the new PUC proposal would require, because it asks more of data centers than the public argument usually assumes. Before it connects, a qualifying large-load customer tells the utility how much power it wants served at that site. The rule calls that its contracted peak demand, and it sets the floor for what the industrial customer is billed. The bills start once the power is ready for it, whether or not it has switched anything on, and they run at least 20 years.

It would also put money down before ERCOT has even finished studying whether the project works. If it walks away, that money does not simply come back. The utility first takes out what it has already spent. Of what is left, the data center gets one-fifth back and the rest goes toward holding transmission rates down. A data center that actually runs at full size for five years gets its money back, and it would pay cash for the wires and substation work that connect it. It gets no discount on that bill, and the utility cannot turn around and charge those costs to anyone else. The commission says the point of all this is to keep ordinary customers from being unfairly burdened by the cost of connecting these projects.

Those are real obligations, and they are durable. This is not a proposal that waves large-load projects like data centers onto the electric grid for free. But it leaves one big question unanswered. When the grid needs work to serve a particular data center, does that data center pay for it, or does the cost show up on everyone’s power bill? 

The proposal is clear about the wires and substation work right at the data center’s doorstep. That, the customer pays for. But ERCOT reviews these projects in batches, and it sometimes finds that serving one of them takes more than a hookup. A single large data center can draw an enormous amount of power, and the lines running toward that site may not be built to carry it. The fix may sit well beyond the property line, out on the grid everyone shares. The proposal does not clearly say who pays for that.

Think of it as the driveway and the highway. The PUC proposal is clear that the data center pays for its own driveway. What it does not settle is whether certain improvements, such as adding lanes to the connected highway, the ones identified as necessary to accommodate that new traffic, should also follow the direct-payment route.

That line matters in practice. Say a data center pays upfront for the work at its doorstep. Under the new rule, the utility cannot then charge everyone else for that same work through their rates. That is a sensible protection against getting paid twice for the same infrastructure. It also means where the line falls decides which work gets handled that way, and which does not.

This is not a problem someone had to go digging for; indeed, the PUC raised it itself. In the same proposal, the agency asked whether the definition of transmission interconnection costs should be broadened to include the transmission projects recommended at the conclusion of a batch study to serve the capacity needs of a particular load. The proposal leaves that question open and invites comments in Project 58000.

That split already exists elsewhere in the commission’s own rules. Under the the commission’s proposed companion connection rule, a data center pays outright, in cash, to connect itself. For bigger upgrades further out that are needed to serve it reliably, that rule has the customer put money down instead and says nothing about who ends up paying. The question now is where the first bucket stops and the second begins.

None of this means data centers would pay nothing toward the rest of the grid. They would pay through those minimum bills and through the rates every kind of customer pays into.

That is why this reaches past the utilities and the data centers. The costs that get spread out land partly on households and small businesses, alongside everyone else. This is not a prediction that anyone’s bill is going up. Nobody knows yet how much money is at stake here because ERCOT has not named these projects, let alone priced them out.

There is a real difficulty here, and it deserves to be stated at its strongest. Some broader projects identified through system-wide planning may serve multiple customers or strengthen the grid generally, which can make it genuinely difficult to assign their cost to a single load. Planning does not always sort neatly into who caused what.

But difficulty is not a reason to treat the physical point of connection as the automatic outer limit of a customer’s direct responsibility. That is the position worth arguing: Broader projects identified as necessary to serve a particular load should not be excluded from that customer’s direct responsibility merely because they extend past the wire that connects it. If the planning process names a project as necessary to serve a specific customer’s capacity, the fact that the steel sits farther down the road is a poor reason to categorize it differently.

Comments closed August 11, and here is where the line should start. When ERCOT’s planning identifies work as necessary to serve one data center, that data center should pay for it, unless the commission finds the work does enough for everyone else to justify sharing the cost.

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‘Cocks Not Glocks’ at 10

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Since August 1, 2016—50 years to the day after the UT Tower shooting—it’s been legal to carry concealed firearms into most public university spaces in Texas, including classrooms. 

When the law went into effect despite opposition from students, administrators, and faculty, University of Texas at Austin students reacted by brandishing dildos in a performance-art-style, nonviolent protest that earned national media attention. After the idea spread in a half-joking social media post, student protesters wore T-shirts, held signs and banners, and strapped dildos donated by local shops to their backpacks, all to mock masculine gun culture and the Texas laws that regulate sex toys more heavily than firearms on campus. 

“Texas has decided it is not at all obnoxious or illegal to allow deadly concealed weapons on campus. But walking around with a dildo could land you in trouble,” protest organizer Jessica Jin said at the time. “We’re protesting absurdity with absurdity.” The viral protest was one of the largest gun-control rallies the state had yet seen.

Today, “campus carry” is still in effect, and the obscenity statute regulating sex toys is technically on the books, too, despite a U.S. district judge calling it “facially unconstitutional” and “unenforceable” in 2008. Since then, the Legislature has doubled down, and in February, a federal appeals court ruled that Texas can enforce its latest obscenity law, which targets drag shows and prohibits “sexually oriented performance,” including the exhibition of sex toys and “accessories or prosthetics that exaggerate male or female sexual characteristics.” Meanwhile, researchers at Johns Hopkins University found that, while policies allowing guns on campus don’t reduce mass shootings, gun access “substantially increases” the risk of suicide among young adults.

Dildos were a means to an end in the gun-control-focused “Cocks Not Glocks” protest, but they were, and remain, a complex protest symbol.

August 2016 (Sandy Carson/ZUMA Wire/Alamy Live News)

Some of the Cocks Not Glocks protest’s most intentionally provocative imagery was also its most Texas-specific. The protesters inverted the Battle of Gonzales slogan, “Come and Take It” (already reused by the Tea Party and a Texas gun activist group), to read, “Take It and Come,” and designed a modified version of the famous cannon and star flag, replacing the cannon with a dildo.

Despite the protest’s specificity to Texas, international interest in unraveling the layers of the sophisticated joke at the core of Cocks Not Glocks continues. In a 2024 academic article, Lotta Kähkönen, a scholar based in Finland, used a close reading of online backlash to the protest and interviews conducted at the University of Texas by a Finnish team in the spring semesters of 2018 and 2019 to trace the ways reactions to the dildos were steeped in the objects’ cultural valences, “driving discussions about obscenity, feminism, phallic symbols and sexuality.” Kähkönen points out that “In the United States, themes of protectionism and opposition to ‘immoral’ sexual behavior and pornography have been highlighted in the right-wing agenda after 1977, when strategists discovered that they had a mass appeal.” 

In opposition, dildos as protest symbols were (and are) associated with “sex positivity.” Bringing a sex-positive symbol to oppose gun violence, the student activists of Cocks Not Glocks revived the spirit of the “Make Love not War” movement of the 1960s, which linked sex positivism to nonviolence. “Love-ins” against the Vietnam War and political violence occurred on UT’s campus in 1968. 

The playfully subversive atmosphere of the Cocks Not Glocks protest meant the students could not be dismissed as angry feminists. Yet they did receive sexist backlash and other criticism. The protest organizers also confronted historical associations that complicated the use of this imagery. After an image of a large black dildo displayed at the protest went viral, the protest organizers apologized for unintentionally perpetuating a racist caricature of Black bodies and painted the dildo burnt orange, UT’s school color. 

Engaging in frequent interviews with media outlets, student organizers largely managed to navigate their chosen symbol’s complexity. Framing campus carry as a law that would chill free speech, they argued that if a classroom disagreement could potentially escalate into a firefight, it was unlikely anyone would feel safe enough to challenge a fellow student to a debate. Through this framing, the protesters situated themselves as more comfortable with free speech and the exchange of ideas than the uptight Legislature. The associations they tapped—connecting freedom of speech and sex positivity—go back to at least 1873, when Comstock laws criminalized mailing material related to contraception and family planning by labeling it obscene.

In recent months, dildos have again emerged as a protest prop, this time in opposition to Immigration and Customs Enforcement (ICE). In one demonstration, protesters stuck dildos into the chain-link fence surrounding the Whipple Federal Building in Minneapolis. In another incident, a member of the “Dildo Distribution Delegation” threw a dildo at ICE agents outside the Minneapolis Graduate Hotel in an effort to “psychologically dismantle” the federal law enforcement agency. These dildo-based protests, unpegged from a critique of obscenity laws, are part of a recurring thread in protests against ICE’s disruptive presence in American cities, critiquing MAGA machismo

The shock factor of hundreds of dildos made the Cocks Not Glocks protest memorable, and the conversation that it launched at UT continued beyond the demonstration. UT anthropology professor Craig Campbell added a dildo in the color “gunmetal gray” to a department exhibition case in the UT Student Activity Center, where it was on view for two years. The protest event opened a door for a teachable moment about phallic symbols through an anthropological lens. Campus Carry, a book published by Harvard University Press in 2020, edited by UT professors Matt Valentine and Patricia Somers, includes reflection pieces from students, alumni, and faculty to illustrate the complexity and controversy of the campus-carry policy that sparked the protest. Ellen Spiro & PJ Raval created an award-winning 25-minute documentary about the protests titled Come and Take It. “Gun Free UT” posters continue to appear in campus windows.

Today, however, free speech on Texas public university campuses faces a chill that makes the environment far less hospitable to both student and faculty speech. Student-led demonstrations against the bombing of Gaza were met with forceful arrests by Texas state troopers in 2024. UT students who attempted to schedule a meeting with Provost William Inboden in November 2025, and staged a brief sit-in when the request was denied, were given suspensions. The UT Board of Regents directed faculty to limit classroom discussion of controversial subjects, in a policy that PEN America’s Campus Free Speech Program Director Kristen Shahverdian says “will harpoon any chance students have of a valuable college education at the University of Texas.” 

Administrators are cracking down especially hard on evocations of sexuality. The University of Texas System, Texas A&M, and other universities blocked drag shows in their zealous efforts to comply with a January 2025 executive order. Under a new policy, Texas A&M faculty have been forced to cancel or modify courses that touch on topics related to gender and sexuality, which has already resulted in the baffling removal of Plato readings related to gender from a philosophy course. UT-Austin announced it will consolidate the department of Women’s, Gender and Sexuality Studies; American Studies; African and African Diaspora Studies; and Mexican American and Latino Studies into a single Social and Cultural Analysis department. Faculty are calling the step a culture-war move to destabilize departments. 

“There is zero trust in our administration to be fair or reasonable,” said Campbell. “It feels like we’re sitting on a powder keg.”

The recent series of policies and actions contrasts starkly with the official response to the Cocks Not Glocks protest, during which UT-Austin administrators said the students appeared to be engaging in protected political speech and did not attempt to intervene.

In 2026, student demands for gun control take a different form. On March 3, students gathered on UT’s South Mall to mourn the victims of the recent mass shooting on Austin’s Sixth Street. At the event, members of Students Demand Action called for common-sense gun laws, as the attendees held candles and flowers. 

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An Ode to Austin’s Unsung Proletariat

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I made $7.25 an hour at my first job back in 2015, peddling candles and soaps and other good-smelling baubles at a French boutique near Rice University. It was a good job, as far as first jobs go; I was a junior in high school, and I did my homework behind the counter. I knew even then that $7.25 an hour wasn’t a dignified wage, one you could build a life on, a family. In the 11 years since, the minimum wage in Texas hasn’t budged.

In Jules Wernersbach’s new novel, Work to Do (out in April from University of Iowa Press), the entry-level workers at the Guadalupe Street Co-Op in Austin make $12 an hour. Though it’s more than minimum wage (as management loves to remind them), it’s one of many reasons why the staff is organizing a union. The book unfolds over one week in late August across three perspectives at the organic grocery store: Eleanor, the store’s founder, who’s never gotten over the ex she founded the store with; Roz, the senior floor manager desperate for Eleanor to give her some real power to modernize the co-op; and Randy, the middle-aged trans dairy manager leading the fight for a union. All three protagonists of Work to Do are starving for a sense of community and trying to find it through their work.

Set in 2019, the novel pays homage to both pre-pandemic and pre-gentrification Austin and features haunts gone by like gay bar Dirty Sally’s and UT watering hole Spider House. I wouldn’t say the Austin of Work to Do feels particularly lived-in—these places are more akin to set dressing. But perhaps that’s exactly the point: to show the reader how work alienates us from our surroundings.

The novel unfolds during hurricane season, and it was the climate change angle that first attracted me to the book. The novel opens with a flood, and the storm prep (or lack thereof) lights the powder keg of the workers’ unionizing efforts. After repeated requests to close early, a staff member injures his arm trying to get the doors open after the power blinks out, and an unflattering video circulates of the manager forcing everyone back to work amid the chaos. 

Part of what keeps ownership from preparing adequately are Eleanor’s misguided comparisons to Austin’s real-life Memorial Day flood of ’81, and Wernersbach does an excellent job later in the narrative of jumping back in time to the owner’s lived experience of that flood and the larger-than-life role it plays in her sense of both herself and the business she runs. Climate change makes fools of us when we live in the past, when we don’t imagine that the world could be different than it once was. And though the weather is just peachy for the majority of the book, it comes back in a big way at the conclusion.

But, at the end of the day, this is a workplace drama. It’s an age-old genre in American letters, though one that changes through the years as much as the nature of work does. It’s full of the things that make workplace novels interesting: clandestine group chats, coworkers hearing secret conversations through a door, unsanctioned (and ill-advised) romance. 

I’ve heard it said that Americans don’t like didacticism in their art. If so, some may balk at the book’s decided point of view on precarity. Eleanor must face her own mortality, navigating life and legacy post-breast cancer diagnosis. Roz is burning through the inheritance (and the monthly allowance) left to her by her middle-class family, unclear what lies on the other side. At one point, Randy has only $18.41 in his bank account, and, facing eviction, he stares down the tent he lived in during his early days in Austin as a 20-something and wonders if he can do it again. 

Who has a safety net? the book asks. What is required to make our work dignified? For while it might be true, as the book notes, that “They all passed around what little they had when it was needed, their pooled resources shifting from person to person, a free-floating mutual aid GoFundMe,” we need structures that can sustainably hold us up. 

My one quibble with the book’s stance on labor is not what is said but what is shown. The predominantly white cast of characters, particularly those who get the bulk of the airtime to articulate their political positions at the group’s organizing meetings and around the store, don’t reflect the reality of who is doing frontline work in Texas—those who have the most to gain from a union like the one in the book. According to an Associated Press analysis of U.S. Census Bureau data, frontline workers in Texas are more likely to be people of color. There’s still a beautiful tapestry painted of what it means to be a worker and to organize together; it just feels as if there are a few colors missing. 

There is, though, a delicious array of gay mess in the book. The first girl who made you believe in a future, as a queer person; girls who are taken who you desperately wish weren’t—the kind who make you reckless; ex-girlfriends who have clearly moved on even when you haven’t; families who wish you were different, wish you’d just settle down, get a better job, a different way of life, a respectable one. 

Work to Do is an ode to the service jobs that keep a place like Austin running, the bartenders and grocery store workers and booksellers, the underloved proletariat that keeps those businesses going. When Randy’s roommates suggest that he might find a better-paying job, he puts it this way: “The co-op wasn’t a job for college kids. It was a job for people who didn’t fit in anywhere else. … To earn more you had to buy into the whole American package, you had to want a house and cars and marriage and family and center the comfort of the individual, which was a form of isolation.”

In an age of increasingly frequent disasters, natural and man-made, community is a precious thing indeed. Work to Do is a rousing portrayal of how we might go about the work of making that community together, and in so doing, make our lives a bit less precarious.

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