Texas Data Centers Exploit Minor Permits for On-Site Power Generation
Data center developers in Texas are exploiting state law to secure minor permits for large-scale, on-site diesel generators, bypassing stricter environmental scrutiny. This practice, exemplified by OpenAI's Stargate project, allows for significant emissions of greenhouse gases and harmful air pollutants. At least 38 data centers have used this permitting loophole since 2024.
Data center developers across Texas are utilizing a loophole in state law to install extensive on-site power sources, primarily diesel generators, under minor permits. These permits, typically used for smaller operations like gas stations, allow developers to avoid the rigorous environmental reviews associated with major air permits.
The article highlights OpenAI's Stargate project as a prime example. Initially, Stargate secured permits for 10 turbines and 62 backup diesel generators, which are projected to emit 1.6 million tons of greenhouse gases and 1,000 tons of air pollutants annually. Only after this initial permitting did the project pursue a major air permit for an additional 41 turbines and 18 generators.
Since 2024, at least 38 data centers in Texas have reportedly employed this same permitting strategy, raising concerns about the environmental impact of these large-scale energy operations in the state.