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Texas Data Center Intel
Latest data center news, projects, power and policy across Texas — updated daily.
Recent Texas data center news
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The data center decade has arrived
The United States is anticipating a 30% surge in power demand by 2050, primarily driven by the expansion of data centers and the adoption of electric vehicles. Enverus Intelligence Research (EIR) reported a projected 15.83% rise in total annual energy consumption through 2035. The technology sector is entering an unprecedented capital expenditures cycle, with hyperscalers expected to spend over $50 billion annually by the decade’s end. Notably, the Electric Reliability Council of Texas (ERCOT) will host a significant data center facility totaling 2.2 GW by 2027.
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Hitachi Energy invests additional $250 million USD to address global transformer shortage
Hitachi Energy announced additional major investments of more than $250 million USD to expand global production of transformers’ critical components by 2027. The investment aims to meet surging transformer demand as the electrification of industries amplifies electricity needs. This follows a previous $6 billion USD investment announced in 2024, focusing on expanding production capacities across the U.S. and worldwide, with particular emphasis on facilities in Virginia, Missouri, and Mississippi.
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Transformative U.S. Power Grid Projects Attract Korean Industry Leaders
The KOTRA, in collaboration with the Korean Ministry of Trade, Industry and Energy, unveiled a comprehensive report titled “U.S. Power Grid Industry Trends and Entry Strategies for Our Companies” on March 11. This report serves to guide Korean companies looking to enter the growing U.S. power market. The U.S. Department of Energy has initiatives worth approximately $13 billion aimed at improving the aging power grid and promoting substantial investments in infrastructure.
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https://projectinnerspace.org/news/InnerSpace-Data-Centers.pdf
US-based Project InnerSpace launched a new data center module in its GeoMap TM tool to identify promising locations for geothermal development. The Rhodium Group’s report indicates that next-generation geothermal energy can power up to 64% of the expected data center growth in the US by the early 2030s. The GeoMap TM tool highlights development hotspots in Texas, federal lands in the western US, and internationally in Hungary, Indonesia, and Australia. Geothermal energy offers high capacity factor output and can significantly reduce the levelized cost of electricity for data centers.
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Governor Abbott Announces Schneider Electric Expansion In El Paso
The Texas Governor Greg Abbott announced that Schneider Electric USA, part of Schneider Electric SE, will modernize and expand their electric equipment manufacturing facilities in El Paso. This multi-million-dollar project aims to create 300 new jobs and is backed by a Texas Enterprise Fund grant of $1.5 million. Schneider Electric’s investment will enhance manufacturing capacity for medium voltage switchgear, an essential component for the data center market in Texas and across the U.S.
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TerraPower roundup: Progress for Natrium project
The United States-based TerraPower has made significant advancements in its Natrium Reactor Demonstration Project, a 345-MWe advanced reactor utilizing liquid sodium coolant. The project, which aims for a repeatable deployment model, has seen collaborations with Sabey Data Centers and nVision Energy to enhance the power supply for data centers and streamline facility developments, respectively. Noteworthy contracts have been awarded for essential components in the project, with construction underway in Wyoming.
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🌎 Gas turbine gridlock #236
Engie recently pulled out of two gas plants in Texas, Perseus and Spenser, due to procurement delays. The White House’s energy abundance agenda and rising electricity demand from data centers highlight the role of natural gas. However, gas turbine manufacturers are facing severe delays, with delivery backlogs extending to 2029. As a result, the gas plant projects are threatened, prompting developers to plan equipment acquisition well into the future.
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In case you missed it: Six big solar stories in the news this week
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https://cleanpower.org/wp-content/uploads/gateway/2025/03/US_National_Power_Demand_Study_2025_FINAL.pdf
US-based American Clean Power Association, along with several other organizations including the American Petroleum Institute, Alliance to Save Energy, Clean Energy Buyers Association, Nuclear Energy Institute, the U.S. Chamber of Commerce, and the National Electrical Manufacturers Association, commissioned a study by S&P Global Commodity Insights. The study, titled ‘US National Power Demand Study’, was released on March 7, 2025. It projects a significant growth in electricity demand in the US, driven by manufacturing, data centers, and the electrification of heating and transportation. The study highlights the need for substantial additions to the energy supply, including 60 to 100 GW of gas and over 900 GW of renewables and batteries by 2040. It also emphasizes the importance of energy efficiency and clean firm technologies like advanced nuclear and geothermal in maintaining grid reliability and reducing carbon emissions. The study identifies challenges such as outdated interconnection processes, local opposition, and supply chain constraints, and suggests policy reforms to address these issues. The report also notes that wholesale power prices could be around 20% higher in the short term due to higher gas prices and increased demand.
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Hut 8 Operations Update for February 2025
US-based Hut 8 Corp. secured a 592-acre site in Louisiana for its new River Bend campus, which will house a 300-megawatt utility-scale power asset. The company is upgrading its ASIC fleet with new miners in place, expecting improvements in their hashrate and efficiency metrics. They aim to have 10.3 EH/s target for hashrate and 20.5 J/TH for fleet efficiency as they also progress on their Vega development set for Q2 energization.