Texas is poised to become the nation's leader in natural gas power plants built specifically to serve artificial intelligence data centers — a move that could lead to the release of hundreds of millions of tons of greenhouse gases, according to a new environmental report.
The report, released Wednesday by the Environmental Integrity Project, identified 32 proposed gas-fired power plants in Texas, the largest concentration in any state, as technology companies race to meet growing electricity demand from generative artificial intelligence.
Researchers estimate the projects could collectively emit more than 287 million tons of greenhouse gases each year, along with thousands of tons of particulate matter, nitrogen oxides and other pollutants linked to respiratory illness.
"It makes no sense for a technology of the future to be powered by the dirty fossil fuels of the past," said Jen Duggan, executive director of the Environmental Integrity Project.
She added that communities should have "a right to transparency and public hearings" before projects move forward.
The study examined 74 proposed gas plants nationwide that would operate behind the meter, meaning they would directly power data centers rather than send electricity onto the broader grid.
Texas accounts for nearly half of those projects.
Researchers compiled a list of proposed behind-the-meter natural gas power plants associated with Al data centers using public records, company announcements, permit applications and industry reports.
They then estimated each facility's annual emissions based on its proposed generating capacity, projected operating hours and U.S. Environmental Protection Agency emissions factors.
The report points to several of the state's largest planned facilities — including Project Matador near Amarillo, the GW Ranch Energy Center, the Texas Power Generation Hub, the FO Permian Partners Data Center Complex and the Nexus Data Center Hubbard Power Plant.
Several rank among the nation's highest-projected emitters of greenhouse gases and other air pollutants.
Researchers say Project Matador alone could release more than 40 million tons of greenhouse gases per year, placing it among the largest proposed emitters in the country.
Many proposed facilities are planned in communities already facing health disparities, the report found.
According to the Environmental Integrity Project, nearly 90% of proposed gas plants nationwide are located in counties with life expectancies below the national average, while 40% of residents living within three miles of the projects are in low-income households.
At least 188 schools are located within three miles of proposed plants.
Texas organizer Kendra Seawright, with Panhandle 1st Coalition, said residents near the proposed Project Matador development worry about the project's impact on air quality and public health.
"What is the point of winning the Al race if it costs the lives of the people you're supposed to protect?" Seawright said. "The air pollution from the 11 gigawatts of natural gas power planned for the Matador project is putting the health of Texans on a back burner to prioritize big tech's Al scheme."
The report also raised concerns about water use.
Large Al data centers can consume millions of gallons of water each day, and natural gas plants often require additional water for cooling and electricity generation. That could become increasingly problematic in drought-prone areas of West Texas.
Griffin Bird, the report's lead author, said communities deserve a greater role in decisions surrounding new projects.
"Local communities should have a say in whether data centers and their power plants are built in their backyards," Bird said during a call with reporters, arguing public review should not be rushed.
Texas already ranks among the nation's leaders in operating and planned data centers because of abundant land, existing natural gas infrastructure and state incentives aimed at attracting development. That's in part due to programs like the Texas Energy Fund, which can provide financial support for qualifying gas-fired generation projects connected to the ERCOT grid.
To support the growth of data centers, additional power generation is necessary to meet soaring electricity demand driven by Al, cloud computing and digital infrastructure.
The Environmental Integrity Project said those facilities should instead rely more heavily on renewable energy, battery storage and cleaner technologies while maintaining public oversight of permitting decisions. Renewables like solar and wind are also easier to expand than coal and natural gas plants, Bird said.
"There is no limit on how much solar can scale up," Bird said. "And it can scale a lot quicker than a lot of the gas-fired power plants that are being proposed."
Emmanuel Rivas Valenzuela is KERA's breaking news reporter. Got a tip? Email Emmanuel at erivas@kera.org. KERA News is made possible through the generosity of our members.
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