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Austin Energy planning for 'tremendous strain,' possible billing impacts from new data centers

Austin Energy is planning for operational challenges and potential billing increases as new data centers with growing electric power needs are established in the region.

What residents should know: City officials said the scope and speed of proposed developments like data centers carry "significant challenges" for the public power utility given the amount of power they could end up using. Similar impacts are being felt statewide, with the Electric Reliability Council of Texas, or ERCOT, projecting its peak demand to nearly double by 2028 largely due to data center additions.

It remains to be seen how many major data center plans will materialize around Austin in the near future. The addition of large users to the grid could end up impacting AE's electricity rates as those facilities come online, officials said. For now, major users will not be added until upgrades to protect current customers are complete.

 
Latest News
Austin launches survey on parking, loading zones and sidewalk space

The city of Austin is seeking public input as it develops a citywide Curbside Management Plan aimed at addressing competing uses for curb space, according to a recent update from the Transportation and Public Works Department.

What’s happening? Curbs play a key role in daily transportation, serving as areas for parking, passenger pick-up and drop-off, deliveries, transit access, biking and scooter use, as well as building access, according to the update. City officials manage these spaces through tools such as signage, designated loading zones, pricing and enforcement.

The upcoming plan is intended to help prioritize curb uses, reduce conflicts and prepare for future changes, with a focus on safety, fairness and efficiency.

As part of the planning process, the city has opened an online survey to better understand how residents use curb space, the challenges they encounter and what improvements they would like to see.

The survey will remain open through Jan. 25. 

 
What You May Have Missed
Read about 10 featured businesses, nonprofits in Southwest Austin and Dripping Springs

Read about businesses, restaurants and nonprofits that Community Impact highlighted this year.

1. Austin Salt Cave brings halotherapy, wellness options to South Austin: Owner Kyle Nigro and manager Mallory Ekhlassi hope to bring more wellness options to South Austin through halotherapy sessions, sound baths, yoga classes, workshops and more.

2. Austin nonprofit Urban Roots cultivates young leaders, local food access: The youth-centered nonprofit organization, aims to “grow young minds” to be leaders and give them opportunities to be part of a community-focused solution to local food access.

3. Andino Artisan Gelato serves up handmade family desserts in South Austin: Today, Bejarano owns and operates her own gelato business alongside her husband, Carlos Bejarano, and their sons.

4. Summer Revival brings healthful hometown dining to Dripping Springs: In a growing city like Dripping Springs, healthful eatery Summer Revival aims to build community through serving familiar foods with fresh twists.

5. Austin toy shop Monkey See, Monkey Do! keeps "DIY funky vibe" alive in South Austin: The toy shop reopened at 2810 Menchaca Road on May 2.

 
Key information
Celebrate the start of 2026 with 11 New Year’s Eve events in the Austin area

Looking for ways to ring in the new year? Check out these events happening in the Austin area, including family friendly events and outings for adults age 21 and older.

This list is not comprehensive, and all events are subject to change. 

Lakeway Polar Bear Plunge
Community members are invited to end the year with a trip down the water slide at Lakeway Swim Center. After a dip in the pool, attendees can hang out and enjoy a cup of hot cocoa.

  • Dec. 31, 9-10 a.m.
  • Free
  • 3103 Lakeway Blvd., Austin

New Year’s Eve at Lake Travis Biergarten
Lake Travis Biergarten will host a New Year’s Eve celebration with live music and a DJ.
  • Dec. 31, 8-11 p.m.
  • Free
  • 3519B, N. RM 620, Austin

 
travis county coverage
Burn ban in effect for unincorporated Travis County through Jan. 6

A burn ban for the incorporated areas of Travis County—areas outside of any specific city—was put into effect on Dec. 29. It will remain in effect until Jan. 6 unless lifted sooner by the Travis County Judge or the Travis County Fire Marshal, according to a news release.

Latest update: Due to fluctuations in temperature, including near-freezing temperatures as well as record-breaking heat for December, the burn ban is in place as a safety measure. Low temperatures also cause freeze-cured grass, which loses its moisture, making it susceptible to burn, according to the release.

The details: The ban applies to outdoor burning in unincorporated areas of Travis County, but does not include prescribed burns, outdoor welding, cutting, grinding, or other hot work operations when conducted in accordance with the Travis County Fire Marshal’s Office guidelines.

Also of note: Travis County officials also urge residents to not shoot off fireworks at home during the upcoming New Year’s Eve holiday on Dec. 31 into Jan. 1. 

 

Your local team

Elle Bent
Editor

Judy LeBas
General Manager

Email [email protected] for story ideas, tips or questions.

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