Texas Energy Giants Build Private Plants for AI Data Centers

Texas is seeing an unprecedented surge in AI data center construction, with projections suggesting the state could host more data centers than any other location globally by 2030. To avoid lengthy grid-connection wait times, energy firms including Pacifico Energy, Chevron Corp., Exxon Mobil Corp., and Diamondback Energy Inc. are building private gas-fired power plants. These "power islands" are designed to provide direct electricity to data center complexes, particularly in West Texas.

The Electric Reliability Council of Texas expects an additional 24 gigawatts of demand from grid-connected data centers by 2031, a load roughly equal to the peak demand of the Houston metro area. The Government of Texas has accelerated this growth through a rapid permitting process for construction and pollution.

This expansion has triggered grassroots backlash. Protesters gathered at the Texas State Capitol in Austin on February 23, 2026, to voice concerns over increased water consumption in drought-prone regions and air pollution caused by natural gas and diesel backup generators.