Key facts
- Texas is at the center of a push for gas-fired power plants to serve AI and data centers.
- 32 out of 74 proposed gas plants nationwide are planned for Texas.
- These projects could emit 662 million tons of greenhouse gases annually.
- Developers are opting for dedicated gas generation due to constrained power grids.
- Critics argue these plants increase natural gas demand and emissions.
- Texas's natural gas abundance and infrastructure make it a prime location.
Texas is emerging as a focal point for the development of new gas-fired power plants intended to supply the significant and constant energy demands of artificial intelligence (AI) and data center projects. According to a report by the Environmental Integrity Project (EIP), at least 74 such gas plants are planned across the United States, with Texas accounting for 32 of them, or 43% of the total.
These proposed facilities could collectively generate approximately 143 gigawatts (GW) of electricity, enough to power California nearly three times over, and are estimated to emit around 662 million tons of greenhouse gases annually, a figure comparable to Australia's yearly emissions. The trend is driven by technology companies' race to secure reliable, round-the-clock power for their AI operations, often choosing to build dedicated power generation alongside data centers rather than relying on strained existing power grids.
Most of these projects are designed as "behind-the-meter" plants, directly serving data centers and bypassing the broader grid. While developers argue this approach expedites project timelines and avoids competition for power, critics, including EIP, contend that it increases demand for natural gas and contributes significantly to emissions. The report advocates for cleaner energy sources like solar and wind power with battery storage for future data centers.
Texas's prominence in this trend is attributed to its substantial natural gas production, extensive pipeline infrastructure, available land, and incentives for both data centers and power generation. The state already hosts 296 data centers, second only to Virginia, and its grid operator, ERCOT, forecasts that electricity demand could more than quadruple by 2032, largely due to data centers.
Concerns are mounting as several proposed plants are slated for areas already facing air quality issues, including regions that do not meet federal ozone standards. Public sentiment in Texas is also shifting, with a recent University of Texas poll indicating a majority oppose data center construction in their communities. Municipalities and counties are enacting measures to limit such developments, a sentiment noted by state politicians, including Governor Greg Abbott, who has called for prohibiting AI data centers in rural areas and reconsidering tax breaks for the industry.