On May 25, 2025, Texas officials reaffirmed the state’s commitment to bolstering energy production to support the escalating demands of emerging technologies such as artificial intelligence (AI) and cryptocurrency. This initiative aligns with former President Donald Trump’s pro-energy policies, emphasizing deregulation and innovation to maintain Texas’s leadership in the energy sector.
Texas’s energy infrastructure is a cornerstone of its economic prowess. In 2023, the state accounted for 27% of the nation’s clean natural gas production and 13% of total electricity generation. This robust output positions Texas as an ideal location for energy-intensive operations, particularly data centers that underpin AI and cryptocurrency activities.
The proliferation of data centers across Texas is both a response to and a driver of increased energy demand. The Electric Reliability Council of Texas (ERCOT) reported a surge in grid connection requests, reaching 99 gigawatts (GW) in 2025, up from 40.8 GW the previous year. This growth is equivalent to adding 30 nuclear reactors by 2030, highlighting the urgency of expanding energy capacity to meet technological needs.
To address this demand, Texas is witnessing significant investments in data center infrastructure. Five Point Infrastructure launched PowerBridge, committing up to $1 billion to develop large-scale data center campuses in West Texas. These facilities aim to leverage the region’s abundant natural gas resources and water supply, essential for cooling systems, while exploring carbon capture solutions to mitigate environmental impact.
State leadership, including Governor Greg Abbott and Lieutenant Governor Dan Patrick, supports refining regulatory frameworks to balance innovation with power reliability. Efforts are underway to ensure that the expansion of digital infrastructure does not compromise the stability of the power grid. Senate Bill 6, for instance, seeks to enhance grid resilience and manage the integration of large-scale energy consumers like data centers without overburdening ratepayers.
The economic implications of this energy-tech synergy are substantial. Data centers contribute to job creation, infrastructure development, and increased local tax revenues. Cities like San Antonio and Austin have experienced a quadrupling of colocation data centers over the past five years, driven by the demand for AI and cloud services. However, this rapid expansion also strains power resources, prompting utilities to invest heavily in infrastructure improvements to accommodate growth.
While the state’s energy strategy includes a mix of sources, natural gas remains a pivotal component. In 2023, natural gas provided 41.8% of Texas’s electric-generating capacity. The state’s extensive natural gas infrastructure, comprising numerous processing plants and pipelines, facilitates the swift scaling of energy production to meet rising demands.
The integration of AI and cryptocurrency into the energy landscape also raises considerations about sustainability and environmental impact. Data centers operate continuously and require significant cooling, often consuming large volumes of water and electricity. As such, there is a growing emphasis on developing energy-efficient technologies and exploring renewable energy sources to support these operations sustainably.
In conclusion, Texas’s proactive approach to expanding energy production is central to accommodating the burgeoning needs of AI and cryptocurrency sectors. By leveraging its natural resources, refining regulatory frameworks, and investing in infrastructure, the state aims to maintain its position at the forefront of energy and technological innovation.
