Power scarcity drives datacentres to Texas, where the juice is

Steven

Power scarcity drives datacentres to Texas, where the juice is

Summary

Bloom Energy’s 2026 Datacentre Power Report says power availability has moved from a planning consideration to a major constraint on datacentre growth in the US. Demand for IT power is forecast to surge (around 80 GW in 2025 to ~150 GW by 2028), and operators are moving to regions with abundant supply. Texas is forecast to become the biggest datacentre market by 2028, potentially exceeding 40 GW of IT capacity. The report also highlights a shift towards onsite power generation, supply-chain bottlenecks for gas turbines, and a rise in very large campuses (many exceeding 1 GW).

Key Points

  • Power scarcity is now a primary constraint on datacentre expansion, reshaping siting decisions.
  • Bloom Energy projects US IT load could rise from ~80 GW (2025) to ~150 GW by 2028; Texas may account for ~30% of that by 2028.
  • Roughly one-third of datacentre campuses are expected to be fully powered by onsite generation by 2030 (up ~22% from prior expectations).
  • Gas turbines remain the common choice but face long lead times and bring emissions/noise challenges; fuel cells are cleaner but more costly and complex.
  • Regions with tight permitting or limited grid growth (eg California, Oregon, Iowa, Nebraska) risk losing market share to Texas and similar locales.
  • Scale is increasing: one in five new campuses expected to exceed 1 GW by 2030, rising to nearly one in three by 2035.

Content Summary

The report says datacentre firms routinely expect power availability sooner than utilities can deliver, forcing a location shift to places with ready capacity — notably Texas. Operators are leaning on onsite generation as a bridge or permanent solution to shorten development timelines and lower costs. While gas turbines are established, shortages and environmental drawbacks push interest towards alternatives like fuel cells, though those carry higher capital costs and deployment complications. The overall message: secure power early and align electrical strategy with growing AI-driven compute needs.

Context and Relevance

This is important for datacentre planners, cloud providers, investors and regional policymakers. The trend affects where hyperscalers and colocation providers build, the local grid and permitting landscape, emissions trajectories, and supply-chain demand for generation equipment. It also signals changing competitive dynamics between traditional datacentre hubs (eg Northern Virginia) and power-rich regions (eg Texas).

Why should I read this?

Short and blunt: if you care about cloud capacity, AI infrastructure or datacentre investment, this tells you where the money and kilowatts are heading. Texas is the place to watch — expect siting shifts, equipment shortages and more onsite power plays. Saves you from wading through the full report unless you need the nitty-gritty.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/01/20/texas_datacenter_hotspot/