Texas Data Centers Face Scrutiny Over Pollution Permitting Loophole

Texas Data Centers Face Scrutiny Over Pollution Permitting Loophole

News ClipWOAI·San Antonio, Bexar County, TX·7/30/2026

Two data centers in San Antonio, Texas, owned by Vantage, are facing opposition from homeowners and environmental groups over their plans to build on-site natural gas power plants and diesel generators. Opponents allege that the state allowed the data centers to use a permitting loophole to avoid stricter pollution controls. Environmental groups have threatened to sue, and residents are awaiting a hearing for the final Federal Operating Permit.

environmentalelectricityoppositiongovernmentlegal
Vantage
Gov: Texas Commission on Environmental Quality, Governor Greg Abbott

Two data center complexes under construction by Vantage on San Antonio's far west side are drawing significant resistance from local homeowners and environmental organizations. The projects include on-site natural gas power plants and dozens of diesel generators adjacent to residential neighborhoods, raising concerns about air pollution.

Environmental groups, including Public Citizen and the Sierra Club, allege that the Texas Commission on Environmental Quality (TCEQ) allowed these data centers to exploit a permitting loophole, granting them minor pollution source permits typically reserved for smaller establishments like dry cleaners. This allegedly enables them to bypass stringent pollution controls and public notification requirements that would be mandatory for major air pollution sources. Kathryn Guerra of Public Citizen, a former TCEQ employee, stated that the sites, capable of powering a city the size of Richmond, Virginia, should be treated as major sources.

Homeowner David Thompson expressed concerns about the environmental impact on his family, particularly his infant daughter, after discovering the towering structure near his home was a natural gas plant for a Vantage data center. Governor Greg Abbott has encouraged data centers to build their own power plants to avoid straining the Texas grid. However, environmentalists, citing thermal imaging of another data center in Abilene using a similar permit, warn that these emissions can contribute to ground-level ozone and contain carcinogens.

Public Citizen and the Sierra Club have threatened legal action against Vantage and its power plant partner, VoltaGrid, neither of whom responded to requests for comment. TCEQ also did not comment. Residents will have an opportunity to provide input at an upcoming hearing for the data centers' Federal Operating Permit, though environmental groups fear it may be too late to implement significant changes.