Permian Basin has fundamentals to host in-demand data centers, panel says

AI generated summary

The Permian Basin is emerging as a prime location for data centers, driven by significant demand for energy, particularly from artificial intelligence (AI) facilities. Jose Ortega from FO Permian highlighted that there are currently tens of gigawatts of natural gas available, with an expected demand of 5 to 6 gigawatts from AI centers in the next five years. His company is collaborating with HiVolt to establish a scalable 300 megawatt off-grid natural gas power plant in Midland County, which could expand to 1 gigawatt by 2030, supporting the infrastructure needed for multiple gigawatt campuses.

Panelists at the Permian Power Connection conference emphasized the region's advantages, including land, energy resources, and transmission capabilities. They noted that investments in technology and infrastructure, such as carbon capture and renewable energy initiatives, are crucial for attracting long-term capital. State Rep. Brooks Landgraf underscored the importance of evolving regulations and workforce development to position the Permian Basin as a leader in the energy sector, signaling its readiness for future investments in data centers and related technologies.