A regulatory loophole is allowing dozens of data centers in Texas to build massive gas-fired power plants using simplified permit procedures, bypassing environmental reviews and public hearings. The most emblematic case is OpenAI's Stargate complex in Abilene, which arose without residents being informed. According to a Floodlight investigation, this loophole has already allowed over 2,100 backup diesel generators to be installed with minor permits, typically used for dry cleaners or auto body shops.
Minor permits for massive plants: a regulatory loophole
In Texas, constructing a major emission source requires a major air permit, involving extensive environmental studies and public comment periods. But many data centers circumvented this by initially obtaining minor permits, which are granted quickly and with minimal oversight. As Kathryn Guerra, a former Texas Commission on Environmental Quality (TCEQ) official, explained, these permits are approved without public knowledge. The result is that communities like Abilene found exhaust stacks hundreds of feet high in their backyard without any warning.
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According to collected data, at least 38 data centers in Texas have obtained minor permits to power their on-site plants since 2024. In total, the authorized generators can emit nearly 2,500 tons of nitrogen oxides annually, more than triple the state's newest coal plant. These gases are highly toxic and linked to severe respiratory illnesses. As Bruce Buckheit, former EPA air enforcement chief, emphasizes, the procedure was designed for small operations like three emergency generators, not for 62 generators and 10 turbines as in the Stargate case.
The Stargate case: 62 diesel generators and 10 turbines with a minor permit
The Stargate campus, developed by Crusoe for OpenAI, spans 1,100 acres and houses a 360-megawatt gas plant located about 500 yards from the home of an Air Force veteran. The woman said she only learned of the plans after construction began in 2024, with no chance to voice her opinion. Crusoe maintains the plant has brought economic benefits to the city, funding new fire trucks and school expansions. However, the environmental and health impact worries residents.
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Current minor permits authorize Stargate to emit over 1.6 million tons of greenhouse gases and 1,000 tons of harmful air pollutants annually. Crusoe claims the engines will only be used for backup, but permits allow continuous operation. Already in 2025, developers filed for a major permit, requesting the addition of 41 turbines and 18 generators, which would turn Stargate into one of the largest fossil-fuel plants in Texas, capable of powering over a million homes.
Planned expansion: from minor permit to mega fossil plant
The "small first, big later" strategy is documented by James Doty, a former TCEQ air quality monitor, who deems it unlikely the expansion was a sudden decision. Crusoe's promotional materials from May 2025 indicated contracts for 1.2 gigawatts by year-end. If approved, the expansion would emit greenhouse gases equivalent to nearly 2 million cars annually. This risks locking in fossil fuel use for decades, warns Jenny Martos of Global Energy Monitor, noting that Texas has over 80 gigawatts of new gas plants in its pipeline, second only to China.
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The Texas situation exemplifies a national trend: the AI boom is driving a new wave of fossil-fuel plants, often built in rural areas with little oversight. While President Trump and Governor Abbott push to accelerate development, the lack of transparency risks environmental and health disasters. For related context, read the article on how the US and China compete in energy and chips and the implications for Europe. Another interesting piece is SpaceX Grok 4.5 aiming to disrupt AI coding at half price. For regulatory background, see Wikipedia on Air permit.
Source: https://www.wired.com/story/data-centers-taking-over-texas-pollution-could-be-catastrophic
