Power Generation Is the Giddy-Up, Natural Gas Fuels the Ride
That shameless Texas has captured yet another title that adds to its energy repertoire. This, according to the Houston Chronicle, declaring the Lone Star State Ground Zero for AI data centers, which could see a tripling of capacity by next year and become the largest hub of its kind in the world come 2030. A collective moan was heard from Data Center Alley in Va., now host to more than 600 facilities and holding that world title. But c’mon, it’s not like they didn’t expect this. Land mass, folks.
Reese Energy Consulting today is following the latest news on the data center front, where developers to include midstream, tech, and private equity giants determine their best path forward to lock in the needed mega gigawatts of electricity to feed their power-hungry, 24/7 machines without interruption.
Power generation is the giddy-up for certain. But natural gas fuels the ride.
Supermajor Chevron, with more tentacles than a deep-sea squid, and its partner Engine No. 1, are close to inking a deal with Microsoft to build one of the largest natural gas plants in the country that will power a $7 billion data center capable of generating 2,500 MW of electricity. This one in West Texas, marking a first for Microsoft to gas up and Chevron’s first customer of its power projects.
But wait, there’s more.
Talk about big. As part of Meta’s $10 billion Hyperion AI data center, its largest ever, now under construction in Richland Parish, La., will privately fund seven to 10 new gas power plants along with new infrastructure throughout the state to offset consumer electricity bills. As it should be.