Data City, Texas, aims to power acres of data centers via renewable energy
April 7, 2025
• less than 3 min read
Data centers are driving up energy demand and will continue to do so for the foreseeable future. That means those that are fueled by non-renewable energy will (continue to) have huge carbon footprints. But one energy developer thinks it has a solution.
Energy Abundance recently announced it’s building 50,000 acres of data center infrastructure to be powered entirely by renewable energy. The project will be called Data City, Texas, and be stationed outside Laredo, a city near the US-Mexico border. The energy used for Data City will be “behind the meter,” meaning the energy produced on-site will not go through the grid—it will flow directly into the data centers. This would be particularly beneficial to the electrical grid, which is overwhelmed by data center demand.
“Data City is a world-class infrastructure project, pioneering a new behind-the-meter approach,” Brian Maxwell, Energy Abundance CEO, said in a press release. According to the company, Data City will be the “world’s largest” green energy behind-the-meter hub for data centers. Renewable sources like solar, wind, and green hydrogen will be supported by battery storage and dual-fuel gas turbines, which will start by running on natural gas but then make the switch to green hydrogen “over time.”
Maxwell also said the hub will help the US “win the AI race,” a goal that’s become pertinent for US developers with the advent of DeepSeek, a Chinese AI lab that claims to make systems comparable with that of OpenAI quicker and at a fraction of the price.
The first 300 MW of power—and a million square feet of “data center space”—will be available to lease starting next year. After that, Energy Abundance said in a press release that Data City will grow to offer 5GW of power that will become available to lessees “as demand accelerates.”
“It’s an honor to lead a quintessentially American and Texan endeavor that will power the AI revolution and pave the way to an energy abundant future,” Maxwell said.
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