Amazon is backing a huge gas-based power plant in Texas to supply electricity directly to a planned AI data centre, highlighting how major technology companies are increasingly turning to their own power generation to meet the growing energy needs of artificial intelligence.
The planned facility in Pecos County, known as GW Ranch, could generate 7.65 gigawatts of electricity from 35 gas turbines, according to previously filed permits.
If built as planned, it would be larger than any gas-fired power plant currently operating in the United States.
The plant is being developed by Pacifico Energy.
Amazon`s involvement was first reported by market intelligence firm Cleanview, which linked the project to three data centre construction permits filed by the company this week.
The facility could also become one of the country`s biggest sources of greenhouse gas emissions.
Its permits allow it to emit more than 30 million metric tonnes of greenhouse gases a year, although plants do not necessarily operate at their maximum permitted levels.
Amazon said generating electricity on site would allow it to cover the full cost of powering its operations without shifting the expense to other electricity users.
“Amazon believes in paying the full costs of powering our operations,” a company spokesperson said.
The company said its planned Pecos County data centre campus would initially rely on new on-site power generation and could eventually connect to the electricity grid as interconnection capacity becomes available.
Amazon also said it was exploring solar power and battery storage for the site.
It plans to use non-potable, brackish groundwater, which it said would reduce pressure on local water resources.
The company maintained that it remains committed to its goal of reaching net-zero carbon emissions by 2040 under The Climate Pledge.
Amazon also said it has enabled 40 carbon-free energy projects in Texas with a combined capacity of nearly 10 gigawatts.
Tech giants turn to private power
The move reflects a growing trend among major technology companies as the rapid expansion of artificial intelligence drives demand for electricity.
So-called “behind-the-meter” power projects allow data centres to generate electricity directly at or near their facilities instead of waiting for connections to the public grid.
The approach was once relatively uncommon but has gained momentum as grid connections can take years.
Elon Musk`s xAI, for example, began using mobile gas turbines to power its data centre in Memphis in 2024.
Other major technology companies, including Meta, Microsoft and Oracle, are also pursuing private power projects to support their expanding data centre operations.
The planned Texas plant would be considerably larger than most such facilities.
A 9.2-gigawatt gas plant is also planned in Ohio through a public-private partnership involving SoftBank.
That facility is expected to supply both a data centre and the wider electricity grid.
Environmental concerns
The growing use of gas-fired power for data centres has raised concerns over their environmental impact.
Gas plants generally produce fewer emissions than coal-fired facilities, but they remain major sources of carbon dioxide and other pollutants.
Natural gas production and transportation can also release methane, a powerful greenhouse gas.
The plants can also emit fine particulate matter, nitrogen oxides and hazardous air pollutants such as mercury, formaldehyde and benzene.
These pollutants have been linked to respiratory and cardiovascular health problems.
Amazon`s decision to build dedicated gas power capacity therefore highlights a growing challenge for the technology industry: meeting the enormous electricity needs of AI while reducing the environmental cost of powering it.
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