Texas is poised to lead the nation in power plants built to fuel data centers, according to a new report from an environmental watchdog group that warns the plants plan to emit tons of greenhouse gases and air pollution that will cause significant climate impacts and risks to human health.
At least 74 natural gas-fired power plants that each would generate at least 100 megawatts of electricity are planned across the nation to supply electricity directly to data centers, with 32 of those projects located in Texas. That’s more than any other state, according to a new analysis from the Environmental Integrity Project.
Recommended Videos
The power plants are planned for Comal, Anderson, Bexar, Pecos, Caldwell and many other Texas counties.
Those proposed Texas facilities could emit more than 287 million tons of greenhouse gases annually — equivalent to 61 million gasoline-powered cars driving for a year — according to Clean Air Act construction permit applications, draft permits and final permits for the data center power plants that EIP reviewed.
In addition to greenhouse gases that can trap heat in Earth’s atmosphere, contributing to climate change, those 32 plants could emit more than 14,000 tons of fine particulate matter, 20,000 tons of nitrogen oxides and 8,000 tons of volatile organic compounds if they all operate at maximum capacity, the report says. These pollutants are linked to respiratory illnesses, heart disease and other serious health problems.
The report comes as Texas finds itself at the center of the nation’s AI boom, with at least 248 projects planned statewide, according to a Texas Tribune analysis. The state has become one of the top destinations because of its cheap land, available power, and business-friendly policies.
Community advocates fighting to stop data centers are concerned that the projects will overtax the state’s power grid or make it less reliable, and cause residential electricity bills to rise.
An increasing number of developers are proposing to build on-site natural gas plants to power their data centers rather than relying solely on the state grid.
Griffin Bird, the lead author of the report and a research analyst at EIP, said the report represents a snapshot in time. Researchers only looked at projects that were in the planning process, seeking permits, already permitted or under construction through April, Bird said, adding that at least 11 more data centers have been proposed nationally since then and it’s unclear how many will actually get built.
“We thought it was important to look at what the impact was, identify where they were located, and make sure that the public and decision makers are aware of this trend,” said Jen Duggan, executive director of EIP. “It will have a really significant impact on local communities that will live near these facilities, they’ll have to breathe in unhealthy air concentrations.”
Many data centers and accompanying power plants have been proposed for lower-income communities that already experience poor health outcomes, according to the report. Almost 90% of the proposed plants are planned or under construction in counties where the life expectancy is already below the U.S. average of 77 years.
“Adding more particulate matter and smog-forming air pollutants from these plants could worsen these existing health disparities,” Duggan said.
While data centers have existed for decades, demand has accelerated rapidly with the rise of artificial intelligence, which requires enormous computing power and lots of electricity.
EIP found that of the 74 planned power plants, 71 would be newly-built while three would be expansions. They would collectively generate about 143 gigawatts of electricity — enough to power California nearly three times over, the report said.
Nationally, the proposed plants could emit nearly 662 million tons of greenhouse gases annually, an amount EIP says would have roughly the same climate impact as more than 140 million cars and trucks operating for one year, or the annual greenhouse gas emissions of Australia.
“The biggest impact will depend on where they are located,” said Neil Carman, an air quality expert with decades of Texas knowledge. “It’s a very hot button issue, because there’s already so many air quality problems in Texas.”
The biggest concentration of proposed power plants is in West Texas, where there is little air quality monitoring. Several Texas projects would be built in or near communities that already fail to meet federal ground-level ozone standards, including a proposed plant in San Antonio and north of El Paso.
Another proposed project, the Pacifico Ft. Spunky Power Plant located in Hood County, would be located within 10 miles of areas already experiencing unhealthy ozone pollution.
Data centers have the potential to further exceed or push other areas past those pollution limits, said Carman, a former investigator for the Texas Commission on Environmental Quality and former clean air director for the Lonestar chapter of the environmental group Sierra Club.
Among the largest proposed data centers nationwide is a huge campus outside Amarillo called Project Matador by former Texas Gov. Rick Perry’s company, Fermi America. It could need up to 11,200 megawatts of power — enough to power 2.75 million homes, which is more than the number of households in Houston, Dallas, Austin and San Antonio combined — and its on-site power plants would emit more than 40 million tons of greenhouse gases annually if operating at its maximum permitted level.
For comparison, New York City’s power facilities, transportation system and waste sector generated roughly 48 million tons of greenhouse gas emissions in 2024.
Fermi did not immediately respond to a request for comment.
The proposals arrive as Texas electric planners face unprecedented demand forecasts. The Electric Reliability Council of Texas, which operates the state grid, reported that, as of May, developers had submitted requests representing approximately 439 gigawatts of future electricity demand — equal to roughly one-third of all power generation nationally and about five times Texas’ current record peak electricity demand.
According to ERCOT, roughly 89% of those requests come from data centers, although energy experts caution that some proposed projects may never be built.
Concerns over rapid growth have also fueled debate over who should pay for the infrastructure needed to support the industry.
In March, President Donald Trump encouraged data center developers to build dedicated power plants for their own facilities as part of his “Ratepayer Protection Pledge,” arguing that electricity costs should not be shifted onto existing utility customers.
Texas Gov. Greg Abbott has taken a similar approach. In June, Abbott directed state utilities to ensure that infrastructure costs associated with serving new data centers are shouldered by the developers rather than existing customers. He also announced that regulating the rapidly expanding AI industry will be a priority during the 2027 legislative session and said he plans to propose requirements for new facilities to add power generation to support the state’s electric grid.
At the same time, some Texas counties have attempted temporary pauses on new data center construction in order to assess energy demands and water needs, although several efforts have been scrapped after legal threats from the industry and other challenges. At least one city, San Marcos, recently passed a ban on data centers, testing a novel approach that other Texas cities could emulate.