LUBBOCK, Texas (RFD News) — Data-center expansion is adding a new source of round-the-clock natural gas demand across Texas and the Gulf region. The growth could increase competition for fuel used by fertilizer plants, food processors, irrigation systems, cotton gins, and rural electric utilities.
At least 74 proposed gas-fired plants nationwide would directly serve data centers, including 32 in Texas. Developers have announced about 101 gigawatts of on-site gas generation, although permitting, turbine availability, financing, and local opposition could prevent some projects from advancing.
The added load arrives as liquefied natural gas exports and electricity demand are also expanding. Federal forecasts show data centers driving power growth, with Texas among the regions expected to increase natural gas generation most rapidly.
National gas inventories remain 6.7 percent above the five-year average, but South Central storage declined six billion cubic feet during the latest week. The report does not identify data centers as the cause.
Longer term, sustained computing growth could tighten regional markets even when national supplies appear comfortable. Agriculture will increasingly compete with technology, exports, manufacturing, and power generation for dependable Gulf-region gas supplies.
