Thousands of diesel generators complicate Texas’s AI data center oversight

Texas is auditing proposed data center connections to its electricity grid and has paused permits for new data centers seeking connections until the audit is complete. But critics say the measures may miss the growing number of facilities with their own power sources.

An open letter to Governor Greg Abbott from the NAACP Texas State Conference and the NAACP Center for Environmental and Climate Justice argues that oversight focused on grid connections could leave a gap for data centers that generate or source their own electricity. The groups also say the audit does not adequately address cumulative pollution, water use, and noise.

A Floodlight and Texas Tribune investigation found that at least 38 Texas data centers obtained minor-source permits for on-site power since 2024, covering more than 2,100 diesel generators. At OpenAI’s Stargate campus in Abilene, the investigation found 10 gas-powered turbines and 62 backup diesel generators already built, with approval sought for 41 more turbines and 18 generators.

The investigation also found projects reporting emissions just below permitting thresholds. A CyrusOne facility in Whitney estimated 249.1 tons of nitrogen oxide emissions annually, below a 250-ton threshold for stricter permitting. A Vantage facility outside San Antonio was permitted for 99.8 tons annually in an area with a 100-ton threshold.

The NAACP groups have issued a notice of intent to sue Vantage Data Centers and VoltaGrid. The allegations are pending litigation. Texas’s audit directive says projects that fail may be denied grid connections, but critics argue that oversight also needs to account for the effects of power generated on-site.