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Texas hits pause on data centers

By Kathryn Krawczyk

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This roundup of energy news headlines comes from our Southeast Energy News newsletter. Sign up to get it in your inbox each Wednesday morning.

Data centers denied: Texas Gov. Greg Abbott (R) has effectively declared a moratorium on data center permitting. Abbott has directed the state utility commission and grid operator ERCOT to audit pending applications before allowing any of them to connect to the grid, and it’s unclear how long the process will take. (Texas Tribune)

So much for temporary: SpaceX says it will remove all the unpermitted gas turbines powering its xAI data centers outside Memphis — but not until next year. The generators have been saddling neighboring, majority-Black communities with pollution for months now, according to a lawsuit from the NAACP and the Southern Environmental Law Center. (TechCrunch)

Gas turbines multiply: Pop-up” power plants like xAI’s are, well, popping up around the Southeast. A Georgia data center is building a set of small gas-fired turbines installed without a required air quality permit. And in North Carolina, residents are pushing back against an Amazon data center that will use unpermitted diesel-powered generators for backup power. (Inside Climate News, Inside Climate News)

Transmission impossible: In Texas, Lt. Gov. Dan Patrick and other Republican leaders are calling on state utility regulators to reject a state-spanning transmission line buildout. They, along with many other opponents, including country star Tanya Tucker, acknowledge that the state needs to build up its grid, but say this plan violates residents’ private property rights. (Texas Public Radio)

What’s in a name? Virginia has passed a state law defining agrivoltaics — the practice of pairing farming and solar development on the same plot of land. Proponents hope it’ll help the state meet rising power demand, including from data centers, without jeopardizing farmland. (Canary Media)

From nuclear to data centers: Investment giant Brookfield and utility NextEra Energy announce plans for a $100 billion AI data center campus on the Paducah site — a federally owned, former uranium enrichment facility in western Kentucky. It will include 2 GW of dedicated gas generation and 2.6 GW of battery storage. (Power)

This is big: Renewable energy developer Orgis Energy has brought another 500 MW of solar capacity online at its West Texas array, bringing the project’s total operating capacity to nearly 1 GW. But Orgis is still building, and expects to have more than 2 GW online by 2029. (Electrek)

Coal’s climbing caché: American Electric Power narrowly outbids a data center developer to acquire the 710-MW Longview coal plant in West Virginia, showing that a nationwide power crunch is renewing interest in the fossil fuel. (Financial Times)

More power plant pollution: Georgia Power has begun construction of 1.5 GW of new gas capacity at its Plant Bowen, despite opposition from environmental groups that fear it will worsen air pollution in the Atlanta area. The utility is also planning 500 MW of battery storage at the site. (Georgia Recorder)

Wind costs climb: Dominion Energy estimates its Coastal Virginia Offshore Wind project will end up costing about $11.7 billion, up $300 million from its most recent estimate due to grid upgrade costs and federal tariffs. (Utility Dive)

Nuclear options: Louisiana and Tennessee are among five states that the U.S. Energy Department has chosen as finalists to host a nuclear energy hub. The campuses would include everything from initial enrichment to recycling or disposal of nuclear waste. (Louisiana Illuminator, Tennessee Lookout)