A new Google-funded data centre in Texas will partly rely on a large natural gas power plant, raising alarms about its environmental impact amid the tech giant’s public green commitments.

Big Gas Powering Big Tech

Google is putting money into a large data center campus in Armstrong County, Texas, named Goodnight. While the company is known for pushing renewable energy, documents reveal the site will use natural gas turbines that could pump out more than 4.5 million tonnes of greenhouse gases annually. That’s roughly the same as adding nearly a million extra gas-guzzling cars to American roads every year.

This number is much higher than emissions from typical natural gas plants and even beats those from average coal plants. The data centre’s air permit application, filed with Texas regulators in January, shows the first four of six buildings will connect to the electric grid, but the last two will run off an on-site gas plant. Google says it doesn’t currently have a contract for this gas power, but the permit indicates the company is at least considering it.

Renewables Alongside Fossil Fuels

The Goodnight campus isn't just about gas. It also plans to include 265 megawatts of wind energy, with Google confirming an agreement to buy that clean power. Still, the decision to back a private, off-grid gas plant signals a shift in how tech giants are powering their data centres as the AI boom heats up. Experts say this shows that even companies with strong climate promises are relying on fossil fuels to handle big energy needs.

That’s partly because connecting to public electricity grids can take years and often comes with rising costs. So, data centre developers are increasingly building their own power sources. Natural gas is the preferred fuel for these behind-the-meter projects, which are driving a surge in new gas infrastructure across the US.

Contrasting Approaches to Clean Energy

Google’s new Texas project contrasts sharply with another of its data centre initiatives in Minnesota. There, the company is backing a huge clean energy push that includes 1,400 megawatts of wind, 200 megawatts of solar, and the world’s largest battery by capacity.

Mastheads

The battery uses iron-air technology to store renewable power for up to 100 hours, helping smooth out supply when wind and solar dip during cloudy or calm days.

The Minnesota data center, unlike the Texas gas plant, feeds power into the wider grid and tries to reduce costs for current customers while cutting emissions. Google’s head of advanced energy technologies, Lucia Tian, has emphasised the company’s commitment to scaling infrastructure responsibly and investing in systems that strengthen community resilience.

Energy Bills and Public Backlash

But the surge in data centre demand is causing headaches for ratepayers across the US.

Many states are seeing electricity bills climb sharply as utilities build costly new fossil fuel plants to keep up with tech’s appetite for power. Regulators have faced criticism for fast-tracking approvals and offering generous discounts to big tech firms, leaving everyday customers to carry the costs.

In places like Georgia, energy regulators and their ties to expanding fossil fuel projects for data centres have become hot political issues, with voters ousting some incumbents over rising rates. When the Trump administration declared a national energy emergency and pushed fossil fuels for AI infrastructure, critics said it ignored cheaper, cleaner options like wind and solar.

Utilities are expanding gas plants and giving data centers attractive deals, often relying on hopeful energy demand forecasts that may not happen. Meanwhile, tax breaks promised to lure these projects often fail to deliver promised local jobs or economic benefits, with little accountability once subsidies are locked in.

What It Means for Australia

While these developments are US-based, the implications reach Australia’s shores. Our own tech sector is expanding rapidly, with data centres sprouting up nationwide. Australian policymakers and regulators are watching closely to avoid similar energy challenges, especially as the country grapples with rising electricity prices and the urgent need to cut emissions.

Google itself operates Australian data centres and has committed to renewable energy here, but the Texas example is a warning. The race to power AI and cloud services can push even well-meaning companies toward fossil fuels when clean options seem slower or costlier. How Australia balances these pressures will shape the country’s energy future.

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Google’s Texas project shows how the AI data center boom is pushing tech giants to make hard energy decisions — and those choices affect emissions, grid costs, and public trust.

This article was created with AI assistance.