The Power Connection Digest Issue #48

March 25, 2026

Peter Cook, Editor

Many big announcements and great analysis in The Power Connection Digest today! Take some time to review the headlines and dive into the topics of interest. Please share a link to the Digest to colleagues and contacts whom you think may benefit from receiving it. It’s free!

We are only 75 days from the 2nd Annual Permian Power Connection Conference! Time to register for the conference and to book your hotel room! Those of your who are regulars to Midland know how quickly room rates can skyrocket. Book your room at the brand-new DoubleTree in Midland for our reduced rate of $192 per night before our room block sells out! Call the hotel at 432-225-6600 and refer to the Permian Power Connection Conference to lock it in.

Also, if you need help convincing the higher-ups to let you attend (or sponsor) the conference, we have a preliminary draft of the topics we plan to cover on the agenda. It is on the website. These are going to be some great, informative, non-salesy discussions. Here is a selection of the topics:

Time to Power
Capital Markets and Project Finance for Permian Power Infrastructure
Siting a Gigawatt: Land, Power and Permits in West Texas
Underwriting Power in Data Center Deals
ERCOT & PUCT Strategies for Permian Electrification
Transmission & Grid Reliability in New Mexico: Meeting Industrial & Oilfield Electrification Demands
Behind the Meter and Selling to the Grid: Strategy & Benefits
Bitcoin Mining to AI Data Centers Conversions
Beyond Data Centers: Manufacturing and Higher Education as Power Partners
Reality Check: How Hot is West Texas Gas-to-Power, Really?
Compression, Power, and Gas Supply: The Midstream Perspective on West Texas Energy Growth
Behind-the-Meter Contracting: PPAs, Tolling Agreements, and Power Procurement for Large Load
Microgrids and Hybrid Power Architecture for AI Campuses
SMRs, Geothermal, and the Long Game: What Does the Permian Power Mix Look Like in 2035?

Please let me know (pete@the-power-connection.com) if you have any other suggestions for panel topics or speakers.

Okay, I normally try to keep this intro paragraph short, so I’ll showcase some new sponsors and speakers next week (you can see some of them on the website, though there are several confirmed whom we have not yet added to the site).

And now, the news…

The Permian Basin is predicted to become an AI hub

As AI continues its rapid expansion, so does the demand for energy to power it, and the Permian Basin may soon emerge as a major source. Hat tip to Jose Ortega with FO Permian on a nice news segment.

Microsoft to rent Texas data center dropped by Oracle and OpenAI

Microsoft struck an agreement with developer Crusoe after both Oracle and OpenAI walked away from talks to occupy the site, according to the report.

How Texas became ground zero for AI data centers reshaping the energy industry

“You see a massive movement of these big data center campuses, all coming towards Texas,” said Aman Joshi, chief commercial officer of Bloom Energy, which provides on-site power generation to data centers. Texas metros plan to triple data center capacity by next year.

Google signs data center deal which includes a 20-year commitment to add new clean power

It is not in West Texas, but in addition to the 20-year power deal worth billions, Google will also contribute to enhancing grid flexibility and demand response systems, in the hope of reducing its data center's impact on local homes and businesses.

The New Data Center Playbook: Bring Your Own Power

Bring your own power is no longer a workaround. It is becoming the default.

Texas grid expansion splinters conservatives as data center backlash grows

Grid officials say the $14 billion project, which would be paid for over many years via charges on everybody's electricity bill, is critical to keep the lights on as the state's economy booms. It's primarily meant to support electrification of oil-and-gas operations in the Permian Basin.

How Texas could soon have more AI data centers than anywhere else in the world

Pacifico Energy and other energy companies are rushing to build private power plants across the Lone Star State.

Confrontation between billionaire CEO and Secretary Lutnick hints at trouble with huge West Texas data center project

A confrontation between a Dallas billionaire and Commerce Secretary Howard Lutnick at a Silicon Valley conference has exposed simmering tensions over an effort to secure financing for a sprawling campus of data centers powered by a private energy grid.

Toyota signs deal for power from a large new Texas solar farm

The deal deepens Toyota’s bet on long term renewable contracts and signals how quickly corporate demand is rewiring the Texas grid.

Massive $3.5 billion expansion planned at AI data center in West Texas

Multiple permits were recently filed for Phase 2 of the Galaxy Helios data center in Dickens County, totaling a combined $3.5 Billion price tag for the projects.

Hanwha Energy Enters Agreement to Acquire Texas Gas-Fired Power Generation Facility

The proposed acquisition includes a 324-MW simple-cycle facility located in ERCOT's West Zone.

Nvidia, Emerald AI team with energy companies on "flexible" data centers

Nvidia and startup Emerald AI said they're working with major U.S. energy companies to develop a new class of data centers designed to flex their power use and connect to the grid faster.

Baker Hughes Develops AI-Enabled Power Optimization and Sustainability Solutions for Data Centers with Google Cloud Technology

Project will seek to enhance how data center operators can apply digital intelligence to optimize how power is generated, managed and consumed

Startup Arbor to provide 5 GW of baseload power for data centers

The carbon removal-turned-AI-infrastructure startup is betting it can outpace traditional gas turbines on speed and reliability.

FuelCell Energy launches 12.5MW modular energy solution for data center sector

Will expand manufacturing facility by more than three times to meet demand.

1606 Corp. Signs Agreement to Acquire Data-Center-Ready Property with Captive Power on 132 Acres in Lufkin, TX

The property includes approximately 132 acres of land along with improvements, equipment, and associated development rights, making it well positioned for the deployment of data center infrastructure supported by on-site power generation.

Power, pipes and profit in Texas: private equity finds rich veins in data infrastructure

In some ways, the current AI arms race and digital infrastructure revolution are both a sprint and a marathon.

Baker Hughes Undergoes an AI Makeover

The company said this year that it is on track to double its data center-related orders to $3 billion in the three years through 2027.

Energy Department Announces Partnership to Ensure Affordable Energy and Power America’s AI Future

The U.S. Department of Energy, alongside the U.S. Department of Commerce, today announced a unique public-private partnership with SoftBank and AEP Ohio to redevelop DOE land, modernize energy infrastructure, and develop advanced computing in Southern Ohio.

Pennsylvania House approves data center regulation bill

The 104-95 vote sends a bill to the Senate that would pave the way for regulation of data centers in the Commonwealth.

96 Salem Twp. (PA) landowners complete historic 1,700-acre sale for major data center campus

A group of 96 landowners in Salem Township was paid more than $500 million for approximately 1,700 acres by Blackstone QTS in what is being called one of the largest land aggregations for data centers in the country.

Nscale in talks to acquire up to 8GW Monarch Compute Campus in West Virginia - report

Land has already cleared regulatory hurdles and secured power equipment.

24-Mile Pipeline in Licking County, OH Planned to Feed Data Center

The Energy Cooperative has proposed a natural gas pipeline across Licking County, Ohio. Estimated at $150 million, the project is designed to supply energy to a specific, unnamed data center, which will fully fund the construction.

NextEra gets federal approval to build 10GW of natural gas power in Texas and Pennsylvania for data centers

Tied to Japan's recent $550bn investment commitment to the US market.

Going big (and small) in AI infrastructure

Introducing Spark Factory and Crusoe Edge Zones: Crusoe's next step in vertical integration, delivering scalable, high-performance AI compute faster and closer to where it's needed most.

How Big Tech and Big Power are locking arms to save the grid

Tech companies are changing their message and bringing more ideas and high-tech solutions to the table.

The Emerging Nexus of Data Centers, Excess Natural Gas, and Produced Water: Part I

Excess associated natural gas in basins like the Permian can be strategically redirected to power co-located data centers, improving efficiency while monetizing otherwise constrained resources.

The Economics of a 100MW Campus

A 100MW campus is not a headline. It is a capital structure. It is a sequence of decisions. It is a set of risks that have to clear in order for anything to be built. So let’s walk through it.

AI’s Power Crisis Is Closer Than You Might Think

AI growth is accelerating, but energy limits may slow it down as data center demand strains power grids and raises concerns across the tech industry.

The Future of Data Center Power: Federal Policy Trends

In the past four months, the White House, Federal Energy Regulatory Commission (FERC), and US Congress have each taken significant action on data center energy policy that will influence how facilities are sited, powered, and interconnected for years to come.

CERAWeek Day One Takeaway: Behind-the-Meter Power is Critical for AI Growth

Perhaps the most important energy event in the U.S. from a global and geopolitical and multi-sector perspective, CERA Week expounds on many things, but the intersection of distributed energy and AI was crossed over and over again as it kicked off.

AI Infrastructure Is Now Colliding With the Real World

AI infrastructure is beginning to collide with three systems that do not move at the speed of technology. Utility regulation. Environmental constraints. Geopolitical risk.

Project Stalled: Grid Bottlenecks Threaten the Fifth Industrial Revolution

Operators are increasingly adopting 'bring-your-own-power' models, pairing data centers with on-site generation to bypass grid bottlenecks and accelerate deployment.

Corporate America’s Energy Moment: Meeting Exploding Demand Without Slowing Growth

Corporate leaders are increasingly finding that reliable access to power can no longer be taken for granted. With a powerful voice in economic policy, corporate America can play a critical role in modernizing and streamlining energy development to accelerate projects and strengthen grid reliability.

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