CS City Council Place 5 - Data Center Update

110,457 Views | 945 Replies | Last: 1 day ago by Hornbeck
BobAchgill
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I documented the history of the BCS water crisis in this presentation. You may want to get this insider's view before attending the vote on Thursday:


Equally important is this presentation, which is a call to action for all Americans to submit a comment in the Federal Register regarding the KSC Starship environmental review. The window for submitting comments...some of which call for canceling Starship launches for multiple reasons closes on September 22:


Whether it's the water shortage or the looming monopoly over global internet, Texas needs to step up oversight.

Bob Achgill
Class of '81, BSME
EliteElectric
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Agshooter05 said:

City Manager has got to go. He tries to dictate the direction of the council instead of being a tool for them to use.

and uses withholding information as a tactic to do the dictation
BobAchgill
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This isn't politics. It's survival. Watch before Thursday's vote.

Why you NEED to see this video if you care about water & our future:

50 years of water security… suddenly cut to 810 years.

7 months of silence city staff knew, but voters didn't.

A council member calls it "Ground Zero."

$40M in bonds sold right after the downgrade… were investors misled?

S&P rating agency accused of brushing off a crisis with vague jargon.

7 months of delay before even hiring lawyers to fight.

Missed chance: why didn't Bryan buy local water rights before they were sold away?

College Station set to vote on a giant data center millions of gallons more demand when water is already scarce.

Texas A&M's future at risk if the water runs out.

One citizen forcing the truth into the light DA, Texas Rangers, SEC all put on notice.
woodiewood1
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To me the city's purchase or sale of real property that is above something like $5 mill should have to be approved by the voters, It might take a few months, but that would give time for an in-depth study of the issue by the citizens,

Now a city council member could vote for a $30 million sale or purchase and then a few years after move outside the city or elsewhere in the world and not have to be affected by his/her actions,
Omperlodge
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If they don't want to purge staff, they could eliminate the function of a staff recommendation. Tell them that they need to give the facts and facts alone. They are not part of the approval process and need to be told that by removing the "staff recommendation" on every issue.
Valen
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AG
I'm just taken back how you can see neighborhoods on both sides of this land and think let's squander it for a technology that in 10 years could look completely different or even irrelevant. This could be developed to provide hundreds of jobs for decades.

TAMU1990
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AG
I hope you're speaking tomorrow night
EliteElectric
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Valen said:

I'm just taken back how you can see neighborhoods on both sides of this land and think let's squander it for a technology that in 10 years could look completely different or even irrelevant. This could be developed to provide hundreds of jobs for decades.


This bolded for emphasis!

We don't know what data centers will or won't be in a decade. Think about technology from 2010, doesn't seem that long ago we were using flip phones and streaming wasn't even a thing
Stucco
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What is actually being voted on at the meeting on Thursday? The sale of the land, a noise study, a power study?

Edit: Seems like the sale of the land.
Hornbeck
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AG
Hey! I see my house!
MsDoubleD81
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AG
I see mine too.
EliteElectric
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I think there will be plenty of speakers tomorrow, do you have to sign up to attend?
MiMi
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S
I'm curious about the capacity of the council chamber. If everyone does turn out, will there be an overflow room available?
MsDoubleD81
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AG
I wondered this too. What did they do for the Northgate meeting?
Valen
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AG
For north gate o sat on the floor. They never cut anyone off from coming in. They do have a large lobby with a tv and speaker playing in realtime so you can hear your name if called to speak.
ElephantRider
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AG
dubi said:

I received 2 responses.






Misleading statement by Nichols regarding power. They purchase their own power contracts, but they still have to use the local grid to consume it. That's the issue
Tailgate88
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AG
Valen said:

For north gate o sat on the floor. They never cut anyone off from coming in. They do have a large lobby with a tv and speaker playing in realtime so you can hear your name if called to speak.

I have a feeling there are going to be more people there tomorrow night than there were at the Northgate meeting.
Hornbeck
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AG
To attend, no. To speak, yes. Sign up on city website (someone posted above) by noon. You get three minutes individually. 10 mins if you have 5 or more you are representing.
Koko Chingo
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AG
ElephantRider said:

dubi said:

I received 2 responses.






Misleading statement by Nichols regarding power. They purchase their own power contracts, but they still have to use the local grid to consume it. That's the issue

I think there may be some truth to what Nichols is saying.

SB6 addresses this and as far as I can tell users of over 75MW must "contribute" to the cost of infrastructure and also add a shutoff for energy emergencies. ERCOT decides what is an emergency.

Large users can also sign up to voluntarily throttle and get compensated. We (ERCOT tax money) have already paid millions to data center companies to throttle. The rate structure and rules have not been set according to an AI response to my question.

Prompt #1 summarize SB6
Prompt #2 - Does sb6 talk about payment for volunteering to throttle usage?

The responses are below:

***Can someone with actual knowledge of this kind of regulation do a little more digging on SB6 and payments by ERCOT to users to throttle. My actual work is getting me right now***


Prompt #1
Summarize sb6

The "final version" of Texas Senate Bill 6 (SB 6) refers to the energy legislation that passed the Texas Legislature and was signed into law by Governor Greg Abbott on June 20, 2025
. The bill was enacted to address challenges to the state's electric grid, primarily driven by rapid load growth from large consumers like data centers and manufacturing plants.
The legislation imposes new requirements on large electricity users and provides more authority to the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT).
Key provisions of the final SB 6
  • Cost sharing for large loads: Large electrical customers, initially defined as those using 75 megawatts or more, must now contribute to the costs of new transmission and interconnection infrastructure. Utilities can no longer subsidize these costs using residential rates.
  • Grid reliability measures: The bill requires new large electrical loads interconnected after December 31, 2025, to install equipment that allows them to be remotely curtailed during grid emergencies and firm load shed events.
  • Demand management programs: ERCOT is directed to establish a competitive reliability service to procure demand reductions from large customers, which can be deployed to strengthen the grid during emergencies.
  • Oversight of co-located generation: SB 6 increases regulatory oversight for facilities that combine large loads with on-site generation (such as a data center with its own power plant). These "net metering" arrangements are subject to review and potential conditions from the PUCT to ensure grid reliability.
  • Transparency and planning: Large customers applying for a new interconnection must disclose information to ERCOT, including data on their backup generators, potential service locations, and whether they have submitted similar requests elsewhere in the state. This is intended to improve load forecasting and planning.
  • Study of transmission costs: The PUCT must conduct an evaluation of the "four coincident peak" methodology used for calculating wholesale transmission costs. The study will determine whether the method is still fair and ensure that large customers pay their appropriate share.
  • Backup generation deployment: In a grid emergency, ERCOT can direct certain large customers that use non-exporting backup generation to deploy their power or curtail their load. This action would be taken after all available market services have been exhausted.
Impact and implementation
  • Effective date: The bill became effective immediately upon the Governor's signature on June 20, 2025.
  • Implementation process: The PUCT is currently in the process of implementing the bill through a series of rulemakings, which will define specific standards for interconnection, demand response programs, and cost-sharing.
  • Potential impacts: While the bill aims to stabilize the grid, industry observers note that the increased financial obligations and regulatory oversight could potentially slow down the development of new large industrial facilities, such as data centers, in Texas.
AI responses may include mistakes. For legal advice, consult a professional.


Prompt #2
does sb6 talk about payment for volunteering to throttle usage

Yes, Texas Senate Bill 6 (SB 6) includes provisions for payment related to voluntary usage throttling by large electrical customers
. It directs the Public Utility Commission of Texas (PUCT) to require the Electric Reliability Council of Texas (ERCOT) to develop a new "competitive reliability service".
Here are the key details regarding payment:
  • A "competitive" service: The program is designed to competitively procure demand reductions from large customers, implying that ERCOT will pay participants for their reductions.
  • For large load customers: The service specifically targets large loads with a demand of at least 75 megawatts, such as data centers and manufacturing facilities.
  • Deployment during anticipated emergencies: The program is for voluntary curtailment during anticipated emergency conditions, such as those caused by extreme weather.
  • Not a replacement for other programs: Large customers participating in this new reliability service cannot also participate in other ancillary services or curtail their usage in response to wholesale price signals.
  • Rulemaking will define details: The exact payment structure and pricing for this service will be defined through PUCT rulemaking, which was still in progress as of July 2025.
This voluntary payment for throttling is a separate mechanism from the mandatory curtailment requirements that the bill also imposes on large customers during firm load shed events.
AI responses may include mistakes. For legal advice, consult a professional
ElephantRider
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AG
That's the cost to interconnect them. They're not going to build new import transmission into BCS. That's our constraint
Koko Chingo
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AG
Drewmeister said:

I don't have a dog in this hunt, being a Bryan resident.

That's what you think.....

ERCOT paid a bitcoin miner $31.7 Million to shutdown for one month. At that time they made more money from ERCOT by shutting down versus operating. Unless you are off the grid; you helped pay for that.

ERCOT's primary funding comes from a System Administration Fee, a per-megawatt-hour charge paid by the entities that use the grid, which covers its operational costs. ERCOT sets the fee.

That means every Texans rate goes up to pay for these fees. In the new SB6; from what I gather users of data centers that consume over 75MW can sign up for volunteer throttling to have ERCOT pay them to throttle under high demand. ERCOT sets the rules and the payments.

So if we add a massive data center without adding generating capacity 20 miles south of Fort Stockton and have to pay them to throttle; our rates will probably go up.

For our local issue, College Station would sell land to an entity it cannot even regulate. That responsibility lies with ERCOT and the PUC.

As for noise, the council can create a special zone with different requirements. For example Northgate has higher limits than other areas.

ERCOT Pays BitCoin Miner to Throttle
Koko Chingo
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AG
Thanks, trying to get my real work done and research all this garbage. its not like we even had 5 business days to prepare for tomorrow.....

We need some people to look into SB6 too
Hornbeck
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AG
Koko Chingo said:

Thanks, trying to get my real work done and research all this garbage. its not like we even had 5 business days to prepare for tomorrow.....

We need some people to look into SB6 too


Same. I'm trying to use a lot of the facts I spelled out in my email the majority (thus far) didn't bother to respond to.
Stucco
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Koko Chingo said:

Drewmeister said:

I don't have a dog in this hunt, being a Bryan resident.

That's what you think.....

ERCOT paid a bitcoin miner $31.7 Million to shutdown for one month. At that time they made more money from ERCOT by shutting down versus operating. Unless you are off the grid; you helped pay for that.

ERCOT's primary funding comes from a System Administration Fee, a per-megawatt-hour charge paid by the entities that use the grid, which covers its operational costs. ERCOT sets the fee.

That means every Texans rate goes up to pay for these fees. In the new SB6; from what I gather users of data centers that consume over 75MW can sign up for volunteer throttling to have ERCOT pay them to throttle under high demand. ERCOT sets the rules and the payments.

So if we add a massive data center without adding generating capacity 20 miles south of Fort Stockton and have to pay them to throttle; our rates will probably go up.

For our local issue, College Station would sell land to an entity it cannot even regulate. That responsibility lies with ERCOT and the PUC.

As for noise, the council can create a special zone with different requirements. For example Northgate has higher limits than other areas.

ERCOT Pays BitCoin Miner to Throttle

Compared to the PUC raising the rates to $9,000/Mwh during Uri? The financial impacts were devastating, will take decades to recover from, and ultimately resulted in very little to no additional production. $31m seems like a bargain.
Koko Chingo
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AG
The kicker is we paid for both situations.

I am sure most of us now have a bunch of data center topics showing up on our feeds because we have been searching on the topic. Texas is getting a ton of data centers and many do not come with additional power generation. Add in all the new manufacturing and population boom and we are setting ourselves up for a disaster.

We are going to have the label of the state that produces the most energy and has the most people under rolling blackouts.

If I don't see you Thursday, we will probably meet one August in a few years, at a cooling shelter because our power is out and cannot run our AC.
mwm
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Maybe we can get peta involved.

I've seen hogs and deer cross Midtown Drive just north of Costco.
ElephantRider
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AG
Koko Chingo said:

Drewmeister said:

I don't have a dog in this hunt, being a Bryan resident.

That's what you think.....

ERCOT paid a bitcoin miner $31.7 Million to shutdown for one month. At that time they made more money from ERCOT by shutting down versus operating. Unless you are off the grid; you helped pay for that.

ERCOT's primary funding comes from a System Administration Fee, a per-megawatt-hour charge paid by the entities that use the grid, which covers its operational costs. ERCOT sets the fee.

That means every Texans rate goes up to pay for these fees. In the new SB6; from what I gather users of data centers that consume over 75MW can sign up for volunteer throttling to have ERCOT pay them to throttle under high demand. ERCOT sets the rules and the payments.

So if we add a massive data center without adding generating capacity 20 miles south of Fort Stockton and have to pay them to throttle; our rates will probably go up.

For our local issue, College Station would sell land to an entity it cannot even regulate. That responsibility lies with ERCOT and the PUC.

As for noise, the council can create a special zone with different requirements. For example Northgate has higher limits than other areas.

ERCOT Pays BitCoin Miner to Throttle


This will affect BTU customers as well; we're all in this together from a grid perspective. Right now, only a limited amount of power can get into BCS. CSU, the DC, or whoever can go purchase all of the power contracts they want, but right now only so much would actually be able to get into town. Our import paths consist of a double-circuit 138kV line to the TMPA Jack Creek Switch and a handful of single-circuit 138s from Gibbons Creek. BTU and CSU can only bring in a certain amount, and this facility alone would use almost double the amount that the entire CoCS uses now.
maroon barchetta
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mwm said:

Maybe we can get peta involved.

I've seen hogs and deer cross Midtown Drive just north of Costco.


I might have seen an endangered lizard or wetland toad on that tract in the past.
maroon barchetta
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Stucco said:

Koko Chingo said:

Drewmeister said:

I don't have a dog in this hunt, being a Bryan resident.

That's what you think.....

ERCOT paid a bitcoin miner $31.7 Million to shutdown for one month. At that time they made more money from ERCOT by shutting down versus operating. Unless you are off the grid; you helped pay for that.

ERCOT's primary funding comes from a System Administration Fee, a per-megawatt-hour charge paid by the entities that use the grid, which covers its operational costs. ERCOT sets the fee.

That means every Texans rate goes up to pay for these fees. In the new SB6; from what I gather users of data centers that consume over 75MW can sign up for volunteer throttling to have ERCOT pay them to throttle under high demand. ERCOT sets the rules and the payments.

So if we add a massive data center without adding generating capacity 20 miles south of Fort Stockton and have to pay them to throttle; our rates will probably go up.

For our local issue, College Station would sell land to an entity it cannot even regulate. That responsibility lies with ERCOT and the PUC.

As for noise, the council can create a special zone with different requirements. For example Northgate has higher limits than other areas.

ERCOT Pays BitCoin Miner to Throttle

Compared to the PUC raising the rates to $9,000/Mwh during Uri? The financial impacts were devastating, will take decades to recover from, and ultimately resulted in very little to no additional production. $31m seems like a bargain.


Rates jump into the thousands more often than you might realize, although usually for shorter periods of time.
Koko Chingo
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AG
maroon barchetta said:

mwm said:

Maybe we can get peta involved.

I've seen hogs and deer cross Midtown Drive just north of Costco.


I might have seen an endangered lizard or wetland toad on that tract in the past.


That must have been next to the arrowheads I saw
TAMU1990
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AG
maroon barchetta said:

mwm said:

Maybe we can get peta involved.

I've seen hogs and deer cross Midtown Drive just north of Costco.


I might have seen an endangered lizard or wetland toad on that tract in the past.

There is actually an endangered species of plant called Navasota Ladies Tresses in Lick Creek and throughout the Brazos River basin.
exMachina
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I have been struggling with the question of who exactly wants this deal. In the grand scheme of things, 30 million is peanuts. To reinforce this point, this would correspond to $250 per College Station resident, assuming Priority Power buys the entire lot.

Then, why would the city want a project like this? I think the obvious answer was given by Bob Yancy during the town hall. He described the city government as a service provider, offering services such as trash collection, water, and electricity. From this perspective, acquiring a client that would likely require more services than all of their current "customers" makes sense to them. The only issue here is that, unlike a private utility company, maximizing revenues is not consistent with maximizing the well-being of its stakeholders (us/residents of College Station). A simple example would be that the city could raise the cost of electricity tomorrow and likely generate more revenue, and most residents would not be better off.

Another reason to proceed with the sale is that the benefits from the transaction will be accrued soon, likely with this administration. In contrast, the costs will accrue in years to come, likely with another administration. Moreover, the current administration could always argue that they built in the correct measures into the contract, but their successors failed to regulate the data center/crypto mine effectively.
Hornbeck
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AG
Quote and excerpt from Mayor Nichols on the cloak and dagger from the Eagle -

**************************************************************************
"The executive sessions involving real estate are under the Texas Open Meetings Act and require that no information on pending real estate discussions be revealed until public notice is given regarding notice is given regarding a planned meeting"

Nichols said he did not remember exactly how long the city has been negotiating with Priority Power, but estimated it had been at least a year.
**************************************************************************
From my standpoint and understanding, Mr. Mayor, you are *wrong*. Let's ask AI, shall we?

Hey Grok, does the Texas open meetings act require that governments give no public information about pending real estate transactions?

No, the Texas Open Meetings Act (TOMA, codified in Texas Government Code Chapter 551) does not require governmental bodies to provide no public information about pending real estate transactions. Instead, under Section 551.072, it permits closed (executive) sessions specifically for deliberating the purchase, exchange, lease, or value of real property.

In short, while certain deliberations can be private, the Act does not impose a blanket prohibition on all public information related to these transactions..

********************************************************************************

Again, more smoke and mirrors from the mayor. You guys *could* have gotten input and let us know.

YOU. CHOSE. NOT. TO.

I'm almost certain another Open Records Request into the city for any and all email between economic development, the city manager, the mayor, Priority Power and council will prove to be a bonanza of facts.

JUST LIKE MACY'S

The main issue is trust. We no longer trust anything you guys say. You keep missing the mark.

Who is imposing these requirements, Mr. Mayor? It's not the Texas Open Meetings Act.
Hornbeck
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AG
So, the CEO of Priority Power came out on KBTX, and said, "this is an AI data center".

Let's ask Grok.AI, what's the difference in impact between an AI data center and a bitcoin mining data center.

******************************************************************
While Bitcoin mining has a significant and direct energy-intensive impact, primarily from its Proof-of-Work system, AI data centers also have a substantial environmental footprint, with growing concerns over their energy and water consumption, plus the resource extraction for hardware . Current forecasts suggest AI data centers may soon consume more energy than Bitcoin mining, creating challenges for grids and water resources.

*****************************************************************

More smoke and mirrors. They use a lot of the same hardware (GPUs)

It's arranged differently, manned with a skeleton crew (like bitcoin), and can use as much or more resources.

Why more residents are saying 'No' to AI data centers in their backyard


woodiewood1
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Many data center are built at bitcoin mining sites due to the availability of energy infrastructure being already available to a degree, but you can have a data center and not be at all involved in crypto mining activities. In fact most aren't.


"It's impossible to provide an exact number of data centers that are not Bitcoin miners because there is no publicly available, real-time global registry of all data centers and their specific functions. However, the vast majority of data centers globally are not Bitcoin miners. Bitcoin mining data centers are a niche segment of the overall data center market, which supports a wide range of other services like cloud computing, email, and video calls. "

We need to stop the commenting that this is a bitcoin mining operation, but a data center that is going to use both water and electricity that is not currently available and might severely affect the future electricity and water needs of our growing city,

The agreement with the site tenant/owner needs to state that CS utilities will not supply any water or electricity to the operation. Let them generate their own or buy electricity on the open market and drill their own water well.

I think the location is the wrong location for a data center, but it isn't necessarily a bitcoin mining operation,

 
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