Data Centers Are Building Their Own Gas Power Plants in Texas

AI generated summary

In Texas, the rapid expansion of energy-intensive data centers, particularly those focused on artificial intelligence, has led to developers planning their own gas-fired power plants. One notable project near New Braunfels involves a partnership between AI startup CloudBurst and Energy Transfer, aiming to create a power plant with a capacity of 1,200 megawatts, sufficient to power a major city. Local residents express concerns about the environmental impact and disruption to their rural lifestyle, as the demand for energy continues to surge amidst lengthy wait times for connections to the public grid.

Despite the previous expectation that data centers would rely on renewable energy sources, many developers are now prioritizing gas power due to immediate needs. This shift is supported by state policies that favor gas generation, potentially hindering the growth of renewable energy in Texas. As the demand for power from data centers is projected to double in the coming years, experts warn that this reliance on gas could lead to increased air pollution and greenhouse gas emissions, complicating the state's path toward decarbonization.