The total planned capacity of data centers in the United States has reached 245GW! "Power shortage" turning to "power generation", competing for natural gas in Texas.

Driven by the AI boom, data centers in the United States are expanding at an unprecedented scale, with a growing demand for electricity reshaping the landscape. Developers are shifting their strategies from "connecting to the grid" to "self-built energy" in response. According to the latest data from consulting firm Wood Mackenzie, as of mid-October, the planned total capacity of data centers in the United States has soared to 245 gigawatts (GW), with an increase of 45 GW in just the third quarter. Texas has become a focal point of this investment round, with its planned capacity accounting for over one-fourth of the total in the U.S. and focusing on accessing natural gas resources in the Permian Basin. By the end of the third quarter, the planned capacity of data centers in Texas had reached 67 GW. The core of this trend is a fundamental shift in developer strategies. The report points out that due to a growing lack of confidence in utility companies to meet their immense electricity needs and urgent timelines, data center developers are actively turning to self-owned power facilities, especially natural gas power. This shift is most directly impacting geographical concentration. Texas, with its abundant natural gas resources, particularly the advantage of the Permian Basin, has become the center of this competition. Shift in strategy: from "connecting to the grid" to "self-built power plants" Traditionally, the primary factor in choosing data center locations was proximity to fiber optic networks and end-users, but now ensuring power supply has become the overriding core. According to Wood Mackenzie's analysis, developers are planning gigawatt-level data center parks in West Texas, Pennsylvania, and Wyoming, leveraging local natural gas resources to build their own power plants. Companies such as Pacifico Energy, poolside, and FO Permian have all planned large projects in Texas. This strategy aims to bypass overloaded gas pipelines and the high costs and lengthy waits associated with building new pipelines. Although some projects are using CECEP Solar Energy or wind power, natural gas turbines have become the mainstream technology for new on-site power facilities. The data shows that while projects with on-site power account for only 10% of the total, their capacity makes up 34% of the planned total capacity, with the vast majority in Texas. This trend may have chain reactions in the energy market. The report warns that large-scale construction of natural gas power plants will increase natural gas consumption, competing with liquefied natural gas (LNG) exports, potentially raising long-term natural gas prices in the United States, and ultimately affecting electricity and gas bills nationwide. At the same time, if these projects operate independently of the grid, it will exacerbate supply constraints on power turbines, bringing reliability challenges to other industries dependent on the grid (including electrification transformations). Giant projects distort capital landscape The new development strategy is also distorting the capital market. The report points out that giant projects exceeding $17 billion (accounting for 2% of the total projects) attracted up to 42% of capital deployment. Among them, projects such as Project Jupiter in New Mexico ($160 billion) and Project Kestrel in Missouri ($100 billion) are using innovative financial instruments like issuing industrial revenue bonds (IRBs) to obtain tax benefits, with their investment scales far exceeding those of traditional tech giants. This article is translated from Wall Street News, authored by Long Yue; GMTEight Editor: Wen Wen.