Power scarcity drives datacenters to Texas, where the juice is
(2026/01/20)
- Reference: 1768927852
- News link: https://www.theregister.co.uk/2026/01/20/texas_datacenter_hotspot/
- Source link:
Everything's bigger in Texas, including the amount of available power. That's why the Lone Star State is set to become the leading bit barn market within a few years, and why hyperscalers and colocation providers now expect roughly a third of datacenter campuses to rely entirely on onsite power by 2030.
These findings come from the [1]2026 Datacenter Power Report [PDF] by Bloom Energy, a firm whose business is manufacturing solid oxide [2]fuel cells , so it has more than a passing interest in onsite power generation.
It says that, in just over a year, power availability has moved from being one of many planning considerations to one of the major constraints on datacenter growth, and this factor is reshaping the industry, at least in the US.
[3]
The demand for energy from these massive server farms is growing rapidly, with the report claiming that total IT infrastructure load could roughly double over the next few years, from about 80 GW in 2025 to 150 GW or more by 2028.
[4]
[5]
But as The Register has [6]covered before , it often isn't possible to add extra grid and generating capacity at the same rate as new server farms are popping up, because of issues such as planning restrictions and funding.
Perhaps not helping is that datacenter firms consistently expect power to be available up to two years earlier than the utilities and power generating companies say it can be delivered, according to the report.
[7]
This is forcing operators to go where the power is, and Texas is expected to be a big winner here, thanks to its ample energy resources. Bloom Energy forecasts that, by 2028, the state could exceed 40 GW of IT capacity, nearly 30 percent of the anticipated US total, and more than double its current share.
Currently, Virginia is the [8]datacenter capital , with Northern Virginia alone accounting for nearly 15 percent of global hyperscale capacity, according to figures from Synergy Research Group.
Regions such as California, Iowa, Oregon, and Nebraska are likely to see declines of more than 50 percent in relative market share, due to their restrictions on power availability, permitting complexity, and longer connection timelines that limit their attraction for datacenter expansion, the report says.
[9]
Meanwhile, hyperscalers and colocation providers are increasingly looking to onsite power generation rather than relying on the grid for some sites. The report claims that the share of those expecting to operate campuses fully powered this way by 2030 has increased by 22 percent and will make up roughly one-third of all datacenters.
Deploying onsite generation as a temporary bridge to grid power remains the most common deployment model, but the report authors forecast that permanent onsite power will become the go-to solution for minimizing development timelines and costs.
[10]AI is rewriting how power flows through the datacenter
[11]All aglow about DCs, investors launch $300M at microreactor startup
[12]Why do bit barns keep bumping up our bills, Senators ask DC operators
[13]From Georgia to Essex, AI datacenters are testing public goodwill
Bloom Energy naturally notes that fuel cells are a leading candidate for onsite power. But the preferred choice of datacenter operators is likely to be gas turbine generation, as this is a technology that is well established.
However, there is such high demand for this equipment that there is now a shortage, with [14]customers facing long lead times to receive them. Gas turbines also have the disadvantage of greenhouse gas emissions and noise, which could cause planning problems and impact net-zero plans by operators.
Fuel cells avoid combustion noise and many emissions, but they can be expensive to deploy - partly because some types use costly catalyst materials - and using hydrogen as a fuel introduces storage, infrastructure and safety challenges.
The report also forecasts an increase in scale for new-build datacenters, with one in five campuses expected to exceed 1 GW by 2030, rising to nearly one in three by 2035.
Operators are advised that they need to act earlier and plan more aggressively to secure power and align their electrical strategy with the scale of their AI requirements, as well as expand where and how they site campuses. ®
Get our [15]Tech Resources
[1] https://www.bloomenergy.com/wp-content/uploads/2026-power-report.pdf
[2] https://www.theregister.com/2024/08/16/equinix_shows_off_demo_fuel/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2026/01/14/datacenter_expansion_power_limit/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2024/08/15/hyperscale_capacity_global_research/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2025/12/22/ai_power_datacenter/
[11] https://www.theregister.com/2025/12/17/smr_investment/
[12] https://www.theregister.com/2025/12/16/datacenters_energy_bills_dc/
[13] https://www.theregister.com/2025/12/16/datacenter_development_controversy/
[14] https://www.theregister.com/2025/10/22/datacenter_jet_engines/
[15] https://whitepapers.theregister.com/
These findings come from the [1]2026 Datacenter Power Report [PDF] by Bloom Energy, a firm whose business is manufacturing solid oxide [2]fuel cells , so it has more than a passing interest in onsite power generation.
It says that, in just over a year, power availability has moved from being one of many planning considerations to one of the major constraints on datacenter growth, and this factor is reshaping the industry, at least in the US.
[3]
The demand for energy from these massive server farms is growing rapidly, with the report claiming that total IT infrastructure load could roughly double over the next few years, from about 80 GW in 2025 to 150 GW or more by 2028.
[4]
[5]
But as The Register has [6]covered before , it often isn't possible to add extra grid and generating capacity at the same rate as new server farms are popping up, because of issues such as planning restrictions and funding.
Perhaps not helping is that datacenter firms consistently expect power to be available up to two years earlier than the utilities and power generating companies say it can be delivered, according to the report.
[7]
This is forcing operators to go where the power is, and Texas is expected to be a big winner here, thanks to its ample energy resources. Bloom Energy forecasts that, by 2028, the state could exceed 40 GW of IT capacity, nearly 30 percent of the anticipated US total, and more than double its current share.
Currently, Virginia is the [8]datacenter capital , with Northern Virginia alone accounting for nearly 15 percent of global hyperscale capacity, according to figures from Synergy Research Group.
Regions such as California, Iowa, Oregon, and Nebraska are likely to see declines of more than 50 percent in relative market share, due to their restrictions on power availability, permitting complexity, and longer connection timelines that limit their attraction for datacenter expansion, the report says.
[9]
Meanwhile, hyperscalers and colocation providers are increasingly looking to onsite power generation rather than relying on the grid for some sites. The report claims that the share of those expecting to operate campuses fully powered this way by 2030 has increased by 22 percent and will make up roughly one-third of all datacenters.
Deploying onsite generation as a temporary bridge to grid power remains the most common deployment model, but the report authors forecast that permanent onsite power will become the go-to solution for minimizing development timelines and costs.
[10]AI is rewriting how power flows through the datacenter
[11]All aglow about DCs, investors launch $300M at microreactor startup
[12]Why do bit barns keep bumping up our bills, Senators ask DC operators
[13]From Georgia to Essex, AI datacenters are testing public goodwill
Bloom Energy naturally notes that fuel cells are a leading candidate for onsite power. But the preferred choice of datacenter operators is likely to be gas turbine generation, as this is a technology that is well established.
However, there is such high demand for this equipment that there is now a shortage, with [14]customers facing long lead times to receive them. Gas turbines also have the disadvantage of greenhouse gas emissions and noise, which could cause planning problems and impact net-zero plans by operators.
Fuel cells avoid combustion noise and many emissions, but they can be expensive to deploy - partly because some types use costly catalyst materials - and using hydrogen as a fuel introduces storage, infrastructure and safety challenges.
The report also forecasts an increase in scale for new-build datacenters, with one in five campuses expected to exceed 1 GW by 2030, rising to nearly one in three by 2035.
Operators are advised that they need to act earlier and plan more aggressively to secure power and align their electrical strategy with the scale of their AI requirements, as well as expand where and how they site campuses. ®
Get our [15]Tech Resources
[1] https://www.bloomenergy.com/wp-content/uploads/2026-power-report.pdf
[2] https://www.theregister.com/2024/08/16/equinix_shows_off_demo_fuel/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2026/01/14/datacenter_expansion_power_limit/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2024/08/15/hyperscale_capacity_global_research/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aW-0vyxKUgfwiUgmI0yOygAAAkM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2025/12/22/ai_power_datacenter/
[11] https://www.theregister.com/2025/12/17/smr_investment/
[12] https://www.theregister.com/2025/12/16/datacenters_energy_bills_dc/
[13] https://www.theregister.com/2025/12/16/datacenter_development_controversy/
[14] https://www.theregister.com/2025/10/22/datacenter_jet_engines/
[15] https://whitepapers.theregister.com/