Data center developers in Texas have used simplified permits to begin constructing their own power plants without public discussion, according to a WIRED report citing an investigation by Floodlight.
Large pollution sources require individual permits with environmental reviews and public notifications. The simplified procedure allows for quicker approval of individual turbines and generators without public hearings.
Floodlight reports that these tools were initially intended for standard and relatively small emission sources. However, companies now use this scheme to apply for expansions of already under-construction facilities, which are much harder to halt.
Since 2024, at least 38 data centers have obtained permits for their own power generation through this procedure. More than half of the projects reviewed by journalists reported nitrogen oxide emissions just below the threshold that triggers public procedures. For instance, the Vantage data center near San Antonio was permitted 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 as “start small, then go big.” They noted that companies break a single project into several smaller applications, later combining the installations into an industrial-scale power plant.
“All of this should have been combined into a single permit,” said Bruce Buckheit, former head of air quality enforcement at the EPA.
He believes this practice may violate requirements to consider interconnected parts of a project collectively.
Stargate Seeks to Expand Power Plants
The Stargate data center in Abilene is a central example in the investigation. It is part of an infrastructure initiative by OpenAI, SoftBank, and Oracle, with investments of up to $500 billion over four years. The campus covers about 445 hectares, with a nearby 360 MW gas power plant.
In 2024, developers received simplified 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 of campus developer Crusoe told Floodlight that the turbines would be used only for backup power. However, the current 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 expansion is realized, the power plant’s capacity would be enough to supply over 1 million homes. Journalists compared the potential annual pollution to emissions from nearly 2 million cars.
Gas Capacity for Data Centers Nears 40 GW
Texas already 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, about 40 GW, is intended for direct power supply to data centers.
In terms of gas capacity development, Texas is second only to China. However, some of the announced projects may not receive permits or remain unrealized.
Analytical company Cleanview identified 59 data centers in the U.S. planning to build their own power plants with a total capacity of about 90 GW. As of mid-2026, only about 2 GW had been commissioned.
Floodlight examined documents from nine gas stations related to data centers in Texas. Their permitted emissions could exceed 130 million tons of greenhouse gases annually. The investigation’s authors noted that actual emissions are usually lower than the maximum allowed values.
Regulator’s Response
Former TCEQ employee Catherine Guerra stated that the agency has accumulated over 1,400 unresolved enforcement cases. She noted that the commission completed 39 of them in the previous year.
A TCEQ representative disputed this assessment, stating that the agency conducted over 100,000 inspections in 2025. The commission attributed the low number of enforcement actions to a high level of compliance.
The regulator also stated that it issues permits only when projects comply with federal and regional standards. TCEQ did not respond to specific questions from Floodlight about the investigation’s findings.
OpenAI did not provide a comment. Crusoe stated that the Stargate construction supports Abilene’s economy and funds road, school, and fire equipment upgrades. The company promised to consider the impact of its operations on local residents’ quality of life.
In December 2024, Bloomberg journalists found that the spread of AI-powered data centers could lead to issues in the U.S. power grid.
A year later, the agency noted that the development of electric vehicles and AI has led to increased electricity demand: supply is insufficient, and power grids are struggling with the growing load.
