Natural Gas-Powered Data Center Planned for Abilene
PowerPlay AI and Sharon AI announced plans for a 400-megawatt natural gas-powered AI data center in Abilene, Texas, targeting initial power delivery in 2028. The project is designed to use behind-the-meter natural gas power, avoiding direct ERCOT grid interconnection. This development occurs as Gov. Greg Abbott has directed state entities to audit data centers requesting grid interconnection and ensure residents are not burdened with infrastructure costs.
PowerPlay AI and Sharon AI have unveiled plans for a 400-megawatt natural gas-powered AI data center in Abilene, Texas, with an anticipated initial power delivery in 2028. This joint venture, with PowerPlay touting the Abilene center as its flagship project, has reportedly completed site feasibility, infrastructure assessments, and land acquisition, and is now focusing on natural gas service agreements and selecting an independent power producer.
Notably, the data center is designed to operate on behind-the-meter natural gas power, bypassing direct interconnection with the ERCOT grid. This strategy comes amidst recent directives from Texas Gov. Greg Abbott, who has instructed the Public Utility Commission of Texas (PUCT) and ERCOT to audit all data centers currently requesting grid interconnection and to deny projects that do not comply with state regulations before approving new connections. Luke Velterop, an executive for PowerPlay, emphasized that "power has become the defining constraint of AI," with demand outstripping the grid's capacity to respond.
Sharon AI, PowerPlay's partner, is an Australian neocloud company founded in 2024 specializing in AI data centers. While the company has secured significant deals, it previously withdrew from a proposed data center project with New Era Energy & Digital earlier this year, an incident that prompted an investigation into New Era for allegedly providing misleading business information.
The announcement also coincides with recent polling indicating that Texans generally oppose data center construction in their communities. In response, Gov. Abbott has directed the PUCT and ERCOT to safeguard everyday Texans from the financial burdens of data center infrastructure expansion and to ensure residential electric bills are not adversely affected.