A report issued last week by Bloom Energy said Texas is expected to become the largest home for data centers in the U.S. within the next two years as artificial intelligence continues to expand. A California-based company that provides onsite power generation for data centers, Bloom Energy said currently there are 387 data centers in Texas. Grid demand driven by data centers in Texas is expected to exceed 40 gigawatts by 2028. In 2025 data centers in Texas had a maximum power demand of about 8 gigawatts compared to the state’s grid peak demand of 94 gigawatts, according to ERCOT. (One gigawatt powers about 700,000 homes for a year.)
The report said, “Drawn by cheap gas, available land and a regulatory market more friendly to natural gas power, companies are flocking to Texas to build more data centers that will support the growth of the artificial intelligence industry. The growth of data centers in Texas is projected to outpace any other state in the country over the next several years, propelling Texas above any other top markets with tighter regulations on new gas power generators like Oregon and California.”