Report shows Texas to lead nation in data center power plants
A new report reveals Texas is projected to lead the nation in data center power plant construction, with 32 natural gas-fired plants planned. These facilities are expected to emit significant greenhouse gases and air pollutants, raising environmental and health concerns. State and local governments, including San Marcos, are responding with policy proposals and bans, while community advocates express concerns about grid strain and electricity costs.
A report by the Environmental Integrity Project (EIP) indicates that Texas is set to lead the U.S. in constructing natural gas-fired power plants dedicated to data centers. Of 74 such plants planned nationwide, 32 are slated for Texas, located in counties like Comal, Anderson, Bexar, Pecos, and Caldwell, among others.
EIP's analysis, which reviewed Clean Air Act permit applications, warns that these Texas facilities could annually emit over 287 million tons of greenhouse gases and thousands of tons of fine particulate matter, nitrogen oxides, and volatile organic compounds. These pollutants are linked to climate change and serious health problems, particularly in lower-income communities that already face poor health outcomes. Griffin Bird, the lead author, highlighted the report's role in raising public and decision-maker awareness of this trend.
Community advocates are voicing concerns that these projects will overtax Texas's power grid, reduce reliability, and increase residential electricity bills. While the Data Center Coalition, represented by Dan Diorio, states the industry is committed to energy efficiency and environmental stewardship, developers are increasingly proposing on-site natural gas plants to reduce reliance on the state grid.
In response to surging electricity demand forecasts from the Electric Reliability Council of Texas (ERCOT), Governor Greg Abbott has directed state utilities to shift infrastructure costs for new data centers onto developers and plans to propose new requirements for facilities to add power generation. President Donald Trump has also advocated for dedicated power plants. Some Texas counties have attempted temporary pauses on data center construction, with San Marcos successfully enacting a ban, though other county efforts were scrapped following legal threats from the industry. Project Matador, a massive campus near Amarillo by Fermi America, is highlighted as one of the largest proposed data centers, requiring significant power generation.