AI Data Center Boom Drives Texas Gas Plant Surge

The Environmental Integrity Project (EIP) reports that a surge in artificial intelligence data centers and population growth is driving a boom in gas-fired power plants across Texas. Developers have proposed 108 new plants and 17 expansions, totaling 58,000 megawatts of potential capacity. The EIP warns these projects could emit 115 million metric tons of greenhouse gases annually, creating air pollution equivalent to adding 27 million vehicles to the state's fleet.

The EIP alleges that the Texas Commission on Environmental Quality has misclassified large facilities as minor polluters to bypass rigorous major source permits required by the federal Clean Air Act. The report claims the state is essentially rubber stamping applications without meaningful review. In response, EIP senior attorney Patton Dycus has urged the United States Environmental Protection Agency to review these permitting practices, stating that construction without proper permits would be unlawful.

While the Government of Texas provided $10 billion in public financing for gas plants between 2023 and 2025, the projects face opposition from rural residents and rising turbine costs. The Electric Reliability Council of Texas estimates that state electricity demand will double by 2030. Advocates from Public Citizen and the EIP argue that Texas should instead utilize its leading clean energy capacity, including solar, wind, and battery storage, to meet this demand without increasing fossil fuel subsidies.