Texas Data Center Boom Looks to Natural Gas For Power

October 15, 2025 – Texas’ data center boom is pushing the state closer to new natural gas generation as the only fast, reliable way to meet unprecedented power demand`s. With AI compute farms and hyperscale server hubs sprouting up across the state, industry and grid operators are raising concerns about whether existing electricity infrastructure can keep up.

Many data center developers are already opting to build their own gas-fired power plants on campus, rather than wait years for grid interconnections. These plants can ramp up instantly and offer a predictable supply—advantages that wind, solar, or batteries often can’t match for heavy continuous loads. Some new projects claim they will rely heavily on renewables, but for now, most are leaning into gas to avoid delays and stability risks.

The shift raises important questions about Texas’ energy trajectory. For years, the state has celebrated its growth in wind and solar, but the rise of data centers is tilting the balance toward fossil fuels in the near term. The state’s energy planning is being tested: Can grid upgrades, transmission expansion, and cleaner technologies keep pace with both industrial demand and decarbonization goals?

If Texas is going to remain a top destination for data infrastructure, policymakers and industry must work hand in glove to coordinate power supply, streamline permitting, and invest in technology that can bridge the gap between scale and sustainability. Without that, the race to build compute may drive a parallel race toward more gas generation—just to keep the lights on.