Crusoe Energy outlines plans for 1.2 GW data center in Abilene

The Senate Committee on Business and Commerce convened on February 27, 2025, to discuss Senate Bill 6, focusing on the future of energy infrastructure in Texas, particularly in relation to large data centers and their impact on the electric grid. The meeting featured testimony from various stakeholders, including energy companies and industry representatives, who provided insights on the bill's implications for energy reliability and economic growth.

The session began with a presentation from a representative of the Stargate Project in Abilene, which is currently under construction and is expected to be the world's largest AI data center, operating at 1.2 gigawatts. The speaker emphasized the importance of clear regulations regarding transmission cost allocation and the need to differentiate between new energy resources and existing assets. They expressed support for the bill but proposed clarifications to ensure that legitimate energy loads are prioritized over speculative ones that could clog the interconnection queue.

Sarah Axelrod from Crusoe, another key player in the energy infrastructure sector, highlighted the company's commitment to building data centers powered by clean, low-cost energy. She underscored the importance of a balanced approach in the legislation that would incentivize investments while ensuring reliability in the electric grid. Axelrod also noted that the company is involved in projects that could bring significant investment to Texas, further enhancing the state's energy landscape.

Gideon Powell, CEO of Cholla Inc., shared a personal perspective on the role of AI in enhancing communication and emphasized the need for a flexible load interconnection system. He argued that a voluntary approach could reduce costs for ratepayers and improve grid reliability. Powell drew parallels between the current energy landscape and historical events, advocating for innovation in energy solutions.

Bryn Baker, representing the Texas Energy Buyers Alliance, echoed the need for expanded transmission capabilities to support new loads and proposed a minimum transmission fee for new connections. She stressed the importance of assessing long-term economic benefits in energy planning.

As discussions progressed, committee members, including Senator Sarah King, encouraged stakeholders to provide specific language for amendments to the bill, aiming for a collaborative approach to refine the legislation. The committee expressed a desire to incorporate feedback from industry experts to ensure that the final bill effectively addresses the complexities of energy management in Texas.

The meeting concluded with a call for further input from stakeholders, emphasizing the urgency of developing a robust energy framework that supports both economic growth and grid reliability. The committee's ongoing efforts reflect Texas's commitment to leading in energy innovation while navigating the challenges posed by a rapidly evolving energy landscape.