The 20th century was marked by oil. Wars, economies, and empires revolved around it. Now, a new chapter is opening, and it has nothing to do with black barrels extracted from underground. In one US state, a project of epic proportions is emerging, capable of redefining both the way we generate energy and the infrastructure that supports artificial intelligence. The promise is bold: to create the largest data center city in America, with its own abundant and clean energy source, without relying on the national grid.
Data City: Powering AI without relying on the grid
According to Goldman Sachs, energy demand for data centers is expected to grow 160% by 2030. And there’s a catch: we’re not talking about just any data center, but those supporting the generative AI and supercomputer race, which require constant, dense, and cheap power. This means that already strained power grids may not be able to handle it. The risk is real: AI growing on one side, but with an energy bottleneck on the other.
It is precisely to solve this dilemma that the Data City project was born. Imagine a complex of up to 5 gigawatts (GW) in Laredo, Texas. We’re talking about enough energy to power millions of homes, but with one crucial detail: it won’t rely on the public grid. This model is called behind-the-meter. In other words, all energy is generated and consumed on-site. This reduces costs, eliminates bottlenecks, and ensures the stability that the most advanced AI chips require.
“Building behind-the-meter is the path to energy abundance,” said Brian Maxwell, founder and CEO of Energy Abundance.
Green hydrogen: Fueling Texas’ next-generation data and energy hubs
The biggest surprise: green hydrogen is the fuel behind this revolution. Called by many “the oil of the 21st century,” it has the potential to transform the global energy mix. Much of this is because:
- It can be produced from solar and wind power, with zero carbon emissions.
- It can be stored in underground salt caverns, ensuring a 24/7 supply.
- It can be used for both data centers and large-scale export in the form of green ammonia.
And the most curious thing is that Texas will host two twin projects: the first being Data City, a data center hub of up to 5 GW, ready to serve Nvidia’s Blackwell and Rubin chips. The other is Hydrogen City, an integrated clean energy plant with a $10 billion investment that will begin supplying hydrogen in 2028.
“Data City will be the world’s largest behind-the-meter data center hub powered by 100% 24/7 green energy,” Maxwell said.
Until all this is actually put into practice, the complex will use a mix of natural gas and renewables, but the goal is to migrate to hydrogen and become the first global model of large-scale data centers self-sufficient in clean energy (relying on this element, just as Europe does with its 45,000 tonnes of green hydrogen yearly).
Hydrogen as power: The new geopolitical battleground
It’s worth noting that this movement goes beyond technology; it’s also a geopolitical move. After all, hydrogen is being seen not just as a fuel, but as a global strategic asset, just as oil was in the 20th century. It’s at stake the technology and AI, the global economy, and the Energy independence.
And it’s no exaggeration to say we’re facing a new energy paradigm. Just as oil shaped borders, alliances, and economies in the last century, hydrogen could be the fuel that decides who leads the next technological revolution. It’s no wonder Elon Musk is ready to dry up Texas; he wants what’s been underground for millions of years.
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