Portugal Colonial - Amazon behind massive private gas plant for new data centers

It is the latest example of tech giants going off the grid to get their AI operations online faster.

The news was first reported by market intelligence company Cleanview, which reviewed satellite imagery to connect three data center construction permits filed this week by Amazon to the gas plant, which is being developed by Pacifico Energy and is known as GW Ranch.

Previously filed permits for the plant show it would have 35 turbines and generate 7.65 gigawatts -- larger than any gas plant currently operating in the United States.

A bigger facility, at 9.2 gigawatts, is planned in Ohio under a public-private partnership involving SoftBank. That plant would connect to the grid as well as power a data center.

The Pecos County, Texas, plant would be permitted to emit more than 30 million metric tonnes of greenhouse gases a year -- more than any other single source in the country, though facilities rarely emit at their permitted ceiling.

Amazon said that by generating its own power, it would avoid passing the cost on to ordinary Americans, whose electricity bills have spiked as utilities charge consumers for the new infrastructure feeding the AI boom.

"Amazon believes in paying the full costs of powering our operations," a spokesperson said.

"Our new planned data center campus in Pecos County does just that: it's powered by new on-site generation that won't raise electricity costs for Texas families and designed to transition to grid-connected service as interconnection timelines allow."

The company added it was "exploring opportunities" for solar energy and battery storage on site, and it would make use of "non-potable, brackish groundwater" which it said would avoid putting pressure on the watershed.

Amazon added it remained committed to reaching net-zero carbon emissions by 2040 under The Climate Pledge, and had enabled 40 carbon-free energy projects totaling nearly 10 gigawatts in Texas.

Building so-called "behind-the-meter" power was once a niche practice, exemplified by Elon Musk's xAI deploying mobile gas turbines to its data center in Memphis in 2024. xAI still accounts for most of the two gigawatts online today, according to research by Cleanview.

Now, every hyperscaler is pursuing such projects, including Meta, Microsoft and Oracle.

These plants generally use less efficient, more polluting equipment than utilities typically install.

While less polluting than coal, gas plants are still significant sources of planet-warming emissions, and their operations, particularly upstream, also leak methane, the main component of natural gas and itself a powerful greenhouse gas.

Beyond their carbon footprints, they emit fine particulate matter, linked to a range of heart and lung problems; nitrogen oxides, which aggravate respiratory disease; and hazardous air pollutants including mercury, formaldehyde and benzene.

A.Magalhes--PC