Abilene's Stargate Project Campus Leads Texas' $89.5 Billion in Active Data Center Construction

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

While Texas Governor Greg Abbott has issued a moratorium on data center approvals until an audit process takes effect, that directive will have little effect on the $89.5 billion worth of data center construction currently underway in the state.

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Big Sector for a Big State

Texas is big and has until quite recently been very accommodating to big data center construction--to a fault apparently. This week, Texas Governor Greg Abbott (R) issued a moratorium on new data center approvals in the state until a "comprehensive verification and audit" is performed for each facility addressing issues including power and water use, community impact (noise, light, etc.), ownership verification, and tax breaks being received. The directive was issued to the Texas Public Utility Commission and Electric Reliability Council of Texas (ERCOT), which operates the power grid for around 75% of the state's land area and carries around 90% of its power load. Applications for new power interconnections have exceeded the grid operator's peak operating capacity several times over.

That moratorium, however, will presumably have little effect on what is currently under construction and permitted in the state. Industrial Info Resources data show more than $89.5 billion worth of data center construction currently underway in Texas, with substantial more projects at some stage of planning or engineering. Construction is led by Taylor County, home to Abilene, where the flagship Stargate Project data center campus is taking shape.

The Stargate Project--Taylor County & Beyond

U.S. President Donald Trump announced the Stargate Project on January 21, 2025, the second day of his second presidential term. Stargate is headed up by OpenAI, Oracle, SoftBank and investment firm MGX and is meant to establish multiple hyperscale, artificial intelligence (AI) data campuses throughout the U.S. The undertaking, as originally planned at least, called for $500 billion in investment by 2029.

The flagship Stargate Project campus is in Abilene, Texas, where Industrial Info Resources data show 10 buildings at various stages of the construction timeline. Readers can learn more including the project's scope and schedule, key contact details, and service and equipment needs by clicking here. Current work at the site puts Taylor County over the top for the value of current Texas data center construction, but it only tells half the story of the Stargate Project in the Abilene area.

Forty or so miles northeast of Abilene, in Shackelford County, work on another Project Stargate campus has begun that ultimately will lead to 10 more server buildings. The campuses in Taylor and Shackelford counties have also racked up more than $1 billion worth of natural gas-fired power generation projects to accompany the data centers. The finishing touches are being made to a 1,015-megawatt (MW) simple-cycle plant to support the initial 10 buildings in Abilene, while plans are being drawn up for a 700-MW plant to support the Shackelford County campus. One of the ways of easing through the Texas regulatory process will be for data center developers to bring their own behind-the-meter power.

Another Stargate Project campus is set for Milam County, Texas, and other campuses are in various stages of development in Michigan, New Mexico, Ohio and Wisconsin.

Google's Texas Construction--Gray County & Elsewhere

Construction from Google Incorporated north of Amarillo in the Texas Panhandle has propelled Texas' Gray County into the state's second-place spending position for data centers. Google broke ground earlier this year in rapid succession on the first three of four planned buildings at a facility near Pampa in Gray County, which unlike most of the state, is served by the Southwest Power Pool (SPP) grid, rather than the ERCOT grid.

Each building of the Gray County campus will encompass around 750,000 square feet and require 210 MW of power. Work on the fourth building is expected to kick off in the near future, meaning all buildings will be under construction. The rapid start in construction is accompanied by plans for a rapid pace, with construction of the fourth and final building set for the second half of next year--bringing the estimated total investment value for the facility to $14 billion.

Google is underway with construction at four other major campuses in Wilbarger, Ellis (two) and Haskell counties, most of which are at an early stage with more construction on the horizon.

Other Activity

On the whole, Industrial Info Resources is tracking active data center construction across some 30 Texas counties. While the blockbuster projects garner the most headlines, many projects weigh in with much smaller price tags but are of critical importance. Examples of smaller projects with big effects include one from leading U.S. communications company T-Mobile, which is closing out a renovation at its data center in McAllen, Texas, that involves a remodel of the space to make way for new 5G server equipment. As the nation's second-largest mobile services provider, the smallish $9.5 million construction project could benefit many thousands of customers in the South Texas region.

Even more data center projects are planned for Texas's future, but as the state's regulators and policy-makers tighten the reins on new approvals, the state may not be the near-Wild West for these projects that it has been in the past.

Key Takeaways

• Industrial Info Resources is tracking $89.5 worth of data center construction projects presently underway in Texas.
• Taylor County, home to the flagship Stargate Project campus, leads the state in current data center construction spending.
• Google Incorporated also weighs in as a major player in the state.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).