Texas leads nation in proposed power plants for data centers, which would emit greenhouse gases
Texas is poised to lead the nation in proposed power plants for data centers, with 32 projects identified, which an environmental watchdog group warns will emit significant greenhouse gases and air pollution. These developments raise concerns about environmental impacts, strain on the state's power grid, and increasing electricity costs for residents. State and local governments are responding with directives for developers to bear infrastructure costs and a city in Texas, San Marcos, has enacted a ban on data centers.
A new report from the Environmental Integrity Project (EIP) reveals that Texas is slated to host 32 out of 74 proposed natural gas-fired power plants nationwide, each generating at least 100 megawatts to fuel data centers. These Texas facilities, planned across various counties including Comal, Anderson, Bexar, Pecos, Caldwell, and Hood, could annually emit over 287 million tons of greenhouse gases and significant amounts of particulate matter, nitrogen oxides, and volatile organic compounds, posing substantial climate and health risks.
The findings emerge as Texas experiences an AI boom, with 248 projects planned, driven by cheap land, available power, and business-friendly policies. Community advocates voice concerns about potential grid overtaxing, rising electricity bills, and poor health outcomes for lower-income communities near proposed plants. Dan Diorio of the Data Center Coalition emphasized the industry's commitment to energy efficiency and environmental stewardship.
The EIP report, co-authored by Griffin Bird, highlights that many proposed sites are in counties with below-average life expectancies. Neil Carman, an air quality expert, noted that the largest concentration of proposed plants is in West Texas, an area with limited air quality monitoring, and several projects could exacerbate existing pollution issues in places like San Antonio and near El Paso.
Notable projects include Fermi America's "Project Matador" near Amarillo, potentially requiring 11,200 megawatts of power and generating over 40 million tons of greenhouse gases annually. The Electric Reliability Council of Texas (ERCOT) reports unprecedented demand forecasts, with data centers accounting for 89% of future electricity requests. In response to these concerns, President Donald Trump and Texas Gov. Greg Abbott have advocated for developers to bear infrastructure costs. Furthermore, while some Texas counties' attempts at temporary data center pauses were scrapped due to legal threats, the city of San Marcos successfully passed a ban on new data centers.