News Summary

In a surprising twist for the tech industry, AI startups are increasingly relying on fracked gas to power massive new data centers. This trend has sparked controversy as companies like Poolside and CoreWeave develop facilities in West Texas, tapping into the Permian Basin’s natural gas resources. The project, named Horizon, aims to generate two gigawatts of computing power by burning fracked gas. Similarly, OpenAI’s Stargate data center in Abilene, Texas, requires substantial energy, with its operations partly powered by gas-fired plants. This approach is mirrored by other tech giants like Meta, which is investing in data centers in Texas and Louisiana, primarily powered by new gas facilities. These developments raise environmental and community concerns, particularly regarding water usage in drought-prone areas. As AI companies position natural gas as a pragmatic solution to energy demands, questions about the sustainability and necessity of such infrastructure continue to be debated.