KC Mares Breaks Down the Road Ahead for the AI Energy Landscape.

Rystad tells us that the energy industry can address three key challenges for data centers: capacity bottlenecks by deploying flexible power solutions, grid stability by providing "stability as a service," and cost pressures by offering integrated on-site solutions.

From $26B in announcements to 205 GW in load requests, October set how Texas will power AI this decade.

Long waits for grid connection are prompting companies to turn to on-site generation to meet growing demand from cloud and AI operations. Some data center facilities require over 300 MW of power capacity and connection requests are stretching a power network already under strain from clean power deployment.

Across the U.S., an unmistakable pattern has emerged: developers are increasingly clustering data centers near abundant natural gas resources.

Jose Ortega provides some great insights in a letter entitled “From Oilfields to Cloudfields”.

Makers of small turbines and fuel cells are seeing surging investor interest.

Under the initiative, MPLX would supply natural gas from its Delaware Basin natural gas processing plants to MARA's planned gas-fired electricity generation facilities in West Texas, which would deliver solutions for the region's energy and computing needs.

This strategic initiative will transform the site into a multi-gigawatt AI hub, featuring more than 2 gigawatts (GW) of natural gas generation and a planned 5+ GW nuclear installation, positioning New Mexico as a key participant in the global AI infrastructure ecosystem. Initial power delivery is expected in 2028.

The equipment package will feature units with nameplate capacity of 4 MW per engine and is scheduled to be delivered in late 2026.

ProPetro Holding Corp. is leaning further into the natural gas-powered future, channeling steady gains from its power division to draw big opportunities in the nationwide data center market.

Texas has approved a significant $1.1 billion loan for a proposed natural gas-fired power plant in the Permian Basin, marking the largest financial commitment under a state programme designed to secure the state’s energy future.

AI-powered retail energy collaboration drives cost savings, risk management, and grid-supportive solutions for Bitcoin mining and data centers.

Global engineering and construction group Bechtel said it will work with Doral Renewables to design and build a 430-MW solar power station in Texas. The Cold Creek Solar+Storage project, sited in Schleicher and Tom Green counties, also will include a 340-MWh battery energy storage system.

Fermi America, in partnership with the Texas Tech University System, announced the Texas Commission on Environmental Quality’s preliminary approval of 6 GW of natural gas-based power generation.

Former Energy Secretary Rick Perry’s $17 billion startup aims to build four large nuclear reactors in the Texas Panhandle to fuel AI data centers—eventually. For now, it is sticking with good old natural gas.

The Colchis site includes a fully executed 1-GW Direct Connect Agreement with American Electric Power (“AEP”), under which AEP will construct the necessary dual interconnection facility for a targeted energization in 2028.

The partnership aims to develop detailed generic dynamic models of large loads — such as data centers, crypto, and electrolyzers — and how these loads change their power output during and after a period of grid disturbances. The partnership is part of ERCOT’s recently announced Grid Research, Innovation, and Transformation (GRIT) program.

Specifically, rules governing appropriate locations and regulations for large-load users, such as data centers or renewable generation sources, remain unsettled and often politicized.

The Federal Energy Regulatory Commission has permanently lifted a ban on construction of natural gas pipelines, liquefied natural gas export facilities and related infrastructure while the agency considers appeals to project work.

Gas power M&A valuations have doubled since 2024, but new generation remains a risky investment, analysts say.

Brittain Ladd calls out the “AI Ponzi Scheme”. I think that is unjustified, but the growth potential for AI data centers is not unlimited. These are posts worth considering.