Texas Home to Billions in Project Spending for 3Q Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Texas is home to a wide variety of industrial activity, including data centers and oil and gas. Industrial Info is tracking about $6 billion worth of projects in Texas set to begin construction during the third quarter that have a high probability (81-99%) of moving forward as planned, with the development of data centers and oil and gas assets as a key component.

"Data centers" refers to buildings or campuses housing computer servers that are used for everything from artificial intelligence to cryptocurrency mining, data security, corporate resiliency and supply-chain management.

In April, Pablo Vegas, president and chief executive of the Electric Reliability Council of Texas (ERCOT) (Austin, Texas), told the agency's board of directors that data centers' "insatiable" demand for electricity will require ""tremendous electric demand growth" on the Texas grid over the next five to seven years. For more information, see April 25, 2024, article - Data Centers, Oil & Gas Industry to Drive Surge in Texas Electricity Demand.

Altogether, Texas' data-center projects account for $2.4 billion worth of third-quarter kickoffs.

Among those are two grassroot projects from Skybox Datacenters (Dallas, Texas), both of which are expected to wrap up in mid-2025. This includes the $720 million first phase of its grassroot data center campus in Hutto, outside of Austin. The project involves constructing a 469,000-square-foot building with 12 data halls at the planned six-building campus, also known as PowerCampus Austin. The data center owner and developer also is gearing up for construction of the $480 million first phase of its grassroot data center campus in Lancaster, outside of Dallas, also known as PowerCampus Dallas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed information on the PowerCampus Austin and Dallas projects.

Prime Data Centers (Dallas) is looking toward the $481 million Phase I and $454 million Phase II construction of its Garland Data Center Campus, outside of Dallas. The first two buildings are part of a $1.4 billion multi-phase development. Subscribers can read the project reports for Phase I and Phase II.

Meanwhile, third-quarter project kickoffs aimed at further developing Texas' natural gas pipeline network account for more than $1 billion worth of project activity. Most of the investment is attributed to the construction of pipeline owner WhiteWater Midstream's (Austin, Texas) Blackfin Pipeline--193 miles of intrastate pipeline designed to transport up to 3.5 billion cubic feet per day (Bcf/d) of natural gas from Colorado County (west of Katy, outside of Houston), on the edge of the Eagle Ford shale, to Jasper County in East Texas, north of Beaumont and Port Arthur near the Louisiana border. The project also entails constructing three compressor stations. WhiteWater is targeting an in-service date of fourth-quarter 2025. Subscribers to the GMI Oil & Gas Pipelines Project Database can click here to read the related project reports.

The pipeline is intended to intersect with and be an extension of WhiteWater's Matterhorn Express Pipeline, which is expected to enter service in September and transport up to 2.5 Bcf/d of natural gas from the Permian Basin to Katy. Click here for the Matterhorn Express project reports.

Other industries, including Alternative Fuels, round out Texas' third-quarter project kickoff activity.

Arbor Renewable Gas (Houston) plans to begin the first phase of the potential four-phase construction of a grassroot renewable gas complex in Beaumont, Texas. Known as the "Spindletop" project, the complex is designed to feature up to four units that will process wood waste and forest residue feedstocks into syngas (synthesis gas), which would further be processed into roughly 15 million gallons per year of renewable gasoline upon completion of the four units. Subscribers to the Alternative Fuels Project Database can click here to read about the Phase I project, which is expected to wrap up next year.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).