As artificial intelligence pushes demand for more data centers, companies are drawn to the state’s relatively inexpensive land and natural gas that can run on-site power plants.
Texas is poised to become the largest home for data centers in the country within the next two years as artificial intelligence continues to boom, according to a report published Tuesday.
Bloom Energy, a California-based company that provides onsite power generation for electricity-guzzling data centers, also found that the grid demand driven by data centers in Texas is expected to exceed 40 gigawatts by 2028. The report is based on a survey of both electric utilities and data center developers that was conducted throughout much of last year.
In 2025, data centers in Texas had a maximum power demand of about 8 GW, compared to the state grid’s peak energy demand of 94 GW, according to the Electric Reliability Council of Texas, which manages the grid. One gigawatt is enough to energize about 700,000 homes for a year.
Source: Paul Cobler,
Photo Credit: The steel frame of data centers under construction during a tour of the OpenAI data center in Abilene on Sept. 23, 2025. A total of eight data center buildings are planned to exist on the campus. REUTERS/Shelby Tauber/Pool
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