Amazon Backs Texas Gas Plant to Power AI Data Centers

Amazon has confirmed its investment in a massive off-the-grid data center in Pecos County, Texas, powered by an on-site natural gas plant, after filing three construction permits. According to environmental tracking firm Cleanview, the plant will use 35 turbines to generate up to 7.65 gigawatts of power. Permitted to release up to 33 million tons of carbon dioxide annually, it could become the largest single source of climate pollution in the United States. Amazon is also reportedly negotiating for a 4.5 gigawatt gas power plant in Homer City, Pennsylvania.

This shift toward self-generated, "behind-the-meter" fossil fuel power is becoming an industry-wide trend to bypass grid connection delays. Cleanview identified 59 planned data centers representing approximately 90 gigawatts of capacity—about 25 percent of all planned US data center projects—that intend to build their own power sources. The Environmental Integrity Project estimates that at least 82 gas-burning plants have been proposed or are under construction for data centers, most within the last 18 months. While other disputes have blocked 130 billion dollars in projects this year, developers are rushing to secure power. If permitting delays persist through 2027, only 5 gigawatts of a potential 13 gigawatts of off-grid projects may actually come online.

For AI practitioners, this infrastructure rush highlights the extreme constraints of the AI boom. Amazon CEO Andy Jassy noted on a July 30 earnings call that demand for AI and chips is exploding, with supply expected to lag behind demand well into 2027. To avoid years of waiting for grid hookups, companies are prioritizing speed to power to secure early revenue. However, this strategy forces a compromise on sustainability, directly challenging Amazon's Climate Pledge to reach net-zero carbon emissions by 2040.

This trend mirrors moves by competitors like Elon Musk's xAI, which uses gas turbines to power its Colossus data center in Memphis. The NAACP sued xAI in June after its unpermitted turbines grew from 18 to 27, then 33, and finally 60. Currently, xAI represents most of the 2 gigawatts of behind-the-meter capacity active as of mid-2026. Other tech giants, including Anthropic, Google, Meta, Microsoft, OpenAI, and Oracle, are also pursuing independent power strategies.