Data center developers in Texas have utilized streamlined permits to begin constructing their own power plants without public discussion. This was reported by WIRED, citing an investigation by Floodlight.

Large sources of pollution require individual permits with environmental reviews and notifications to residents. The simplified procedure allows for quicker approvals of individual turbines and generators without public hearings. 

According to Floodlight, these tools were originally intended for typical and relatively small emission sources. However, companies are now using this scheme to apply for expansions of already constructed facilities, which are much harder to halt.

Construction of the Stargate data center and its power plant in Abilene, Texas. Source: Planet Labs PBC, Floodlight.

Since 2024, at least 38 data centers have received permits under this procedure for their own generation. More than half of the projects examined by journalists reported nitrogen oxide emissions slightly below the threshold that triggers public procedures. For instance, the Vantage data center near San Antonio received a permit for 99.8 tons of emissions per year, just under the 100-ton threshold.

Former employees of the Texas Commission on Environmental Quality (TCEQ) described the approach with the formula "small first, then large." They stated that companies break a single project into several smaller applications and later consolidate the installations into an industrial-scale power plant.

"All of this should have been combined into one permit," said Bruce Buckheit, a former head of air quality enforcement at the EPA.

He believes this practice may contradict requirements to consider interconnected parts of a project collectively.

Stargate Seeks to Expand Power Plants

The central example of the investigation is the Stargate data center in Abilene. It is part of an infrastructure initiative by OpenAI, SoftBank, and Oracle, which has announced investments of up to $500 billion over four years. The campus covers about 445 acres, adjacent to a 360 MW gas power plant.

In 2024, developers received streamlined permits for 10 gas turbines and 62 backup diesel generators. According to documents, the equipment could emit over 1.6 million tons of greenhouse gases and about 1,000 tons of other air pollutants annually.

A representative from the campus developer, Crusoe, told Floodlight that the turbines would only be used for backup power. However, the existing permits allow for their continuous operation.

A year later, developers applied for a main permit for 41 additional turbines and 18 generators. At the time of the investigation's publication, it had not yet been approved.

If the power plant expansion is realized, it would be sufficient to supply over 1 million homes. The potential annual pollution was compared by journalists to the emissions of nearly 2 million cars.

Gas Capacity for Data Centers Approaches 40 GW

Texas currently hosts about 300 data centers, with another 200 in development, according to WIRED.

According to Global Energy Monitor, the state has announced 80.6 GW of new gas power plants. Nearly half of this capacity, around 40 GW, is intended for direct energy supply to data centers.

Source: Global Energy Monitor.

In terms of gas capacity, Texas ranks second in development only to China. However, some of the proposed projects may not receive permits or may remain unrealized.

Analytical firm Cleanview identified 59 data centers in the U.S. planning to build their own power plants with a combined capacity of about 90 GW. As of mid-2026, only about 2 GW had been brought online.

Floodlight examined documents from nine gas stations associated with data centers in Texas. Their permitted emissions could exceed 130 million tons of greenhouse gases annually. The authors of the investigation emphasized that actual emissions are usually lower than the maximum permitted values.

Regulator's Response

Former TCEQ employee Katherine Guerra stated that the agency has accumulated over 1,400 unresolved enforcement cases. She noted that the commission completed 39 of them in the past year.

A TCEQ representative disputed this assessment, stating that the agency conducted over 100,000 inspections in 2025. The low number of enforcement actions was attributed to a high level of compliance.

The regulator also stated that it issues permits only when projects comply with federal and state regulations. TCEQ did not respond to specific questions from Floodlight regarding the investigation's findings.

OpenAI did not provide a comment. Crusoe stated that the construction of Stargate supports the economy of Abilene and funds upgrades to roads, schools, and fire equipment. The company promised to consider the impact of its operations on the quality of life for local residents.

It is worth noting that in December 2024, Bloomberg journalists discovered that the proliferation of AI-powered data centers could lead to problems in the U.S. energy system. 

A year later, the agency noted that the growth of electric vehicles and AI had increased demand for electricity: supply was insufficient, and energy systems were struggling to cope with the rising load.