Abbott Announces $278 Million Loan for Freestone County Power Plant Ahead of Data Center Boom

October 15, 2025 – Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan to support construction of a 460-megawatt natural gas power plant in Freestone County, part of Calpine Corporation’s new Pin Oak Creek Energy Center. The $278.3 million low-interest loan—covering 60% of the $464 million project—marks the fourth TxEF agreement since the program began earlier this year.

Set to begin operation before summer 2026, the plant will add critical dispatchable power to the Electric Reliability Council of Texas (ERCOT) grid. Governor Abbott said the investment will “keep prices affordable and ensure continued reliability for all Texans.” Public Utility Commission Chairman Thomas Gleeson noted that TxEF-backed projects have now brought nearly 1,800 MW of new generation online statewide, with more expected as 13 additional projects undergo review.

The facility, located near Calpine’s existing Freestone Energy Center, will serve the ERCOT North Load Zone, which includes the growing Dallas–Fort Worth metroplex. Calpine Executive Vice President Caleb Stephenson said the plant is designed to start within minutes—providing stability during peak demand periods.

Texas faces rising electricity consumption, driven in part by rapid data center expansion and new AI computing facilities that require constant high-power availability. ERCOT projects that demand could reach 218 gigawatts by 2031, making investments in fast-start natural gas plants increasingly vital.

The Texas Energy Fund, created by the Legislature and administered by the PUC, offers competitive low-interest loans to add new, reliable power to the state’s grid. As Texas continues to balance its economic and technological growth with grid stability, projects like Calpine’s Freestone County plant represent a key step in strengthening the state’s energy foundation for the future.