Texas is set to lead the country in a wave of brand-new power plants, but they are not meant to keep the lights on in people's homes. Instead, a new report finds the state is at the center of a buildout of power stations designed to feed the fast-growing artificial intelligence industry and its hungry data centers.
According to the analysis, at least 74 natural gas-fired power plants, each capable of generating 100 megawatts or more, are planned across the nation to supply electricity directly to data centers. Of those, 32 are slated for Texas, more than in any other state.
The purpose of the plants sets them apart from the rest of the grid. Rather than serving neighborhoods and businesses, they are being built to power the sprawling computer warehouses that run AI systems, tying a surge in electricity generation directly to the tech boom.
Environmental groups warn the pollution could be significant. The proposed Texas facilities could pump out more than 287 million tons of greenhouse gases each year, an amount comparable to the emissions of tens of millions of gasoline-powered cars, raising concerns about air quality and local health.
Water is the other flashpoint. Data centers draw heavily on water to keep their systems cool, and a white paper from the University of Texas at Austin estimated that data centers could account for between 3% and 9% of the state's total water use by 2040, up from less than 1% today.
That prospect has alarmed communities already worried about drought. Reports have warned that state water planners failed to anticipate the scale of the tech growth, leaving local towns, including places like Abilene and Amarillo, fearing that data centers could drain their reserves during dry spells.
Some Texas cities are pushing back. San Marcos voted to become the first city in the state to ban data centers within its limits, using its zoning authority to keep the developments out amid worries they would funnel water and energy away from local residents and set a precedent other municipalities could follow.
The friction has even reached the state's top office, with the governor calling for limits on data center development in rural areas. As the AI boom collides with concerns over emissions and water, Texas has become a test case for how far communities will go to control where and how these energy-hungry facilities are built.