Texas Get Ready for AI if Data Centers Ready to Build Power Plants in 2024

By Shubhendra Anand , 22 March, 2025

Texas takes artificial intelligence seriously, although there's a catch – data centers are required to create their power plants to cope with the ever-increasing electricity demand in Texas power plants. During mid-winter and summer peaks, the Energy Reliability Council of Texas (ERCOT) even issued reliability and conservation warnings.

The far-reaching, insatiable demand for artificial intelligence (AI) is now pushing a shift in how energy is consumable, and this trend significantly affects data centers. In terms of utilization, it is predicted that within the next decade, due to the growth of the concentration of data centers, energy usage will make up 3-4 percent of the world's total energy consumption in the year 2030, up from 1-2 percent. Widespread use of AI applications will also contribute to this increase, with the energy used concerning AI technologies increasing by 160 percent by 2030. One of the main reasons for rising overall electricity consumption is the application of artificial intelligence that can be witnessed in almost every industry including health care, financial, and educational industries.

An essential strategic investment partnership has been announced to enhance AI infrastructure in the US about Texa's new venture on data center establishment in 2024. In August, Black Rock, Global Infrastructure Partners, Microsoft and MGX announced the creation of the Global AI Infrastructure Investment Partnership (GAIIP) to construct data centers and energy works. 

This partnership seeks to achieve the creative potential locked in USD 30 billion of private equity that can potentially leverage a further USD 100 billion in total investment. The partners in GAIIP will promote and develop the concept of open architecture and broad ecosystem data centers capable of supporting several partners and companies. Such companies as NVIDIA will assist GAIIP with the construction of AI factories and AI data centers. It is hoped that such a project will bolster the American presence in AI while increasing the demand for the energy infrastructure the US economy badly needs to grow. Hence, Texas may experience better results in AI development with a data center setup.

 AI boom engulfs Texas data centers: