Omaira Garcia didn't realize life on her small ranch in Abilene, Texas, was about to change until clouds of dust—kicked up by a mysterious project next door—began to engulf her home. The Air Force veteran says she found out about OpenAI's plans to build its flagship Stargate data center directly beside her property only after construction began in the summer of 2024. Today, the site's natural-gas-powered electrical plant sits roughly 500 yards from her house, the exhaust stacks clearly visible from her kitchen window. "We weren't given any time to understand what this impact was going to be on us," the mother of two says through tears. "We're trapped here." OpenAI did not respond to multiple requests for comment. A spokesperson for Stargate's developer, Crusoe, says that the data center has "contributed meaningfully to the economic development" of Abilene, and its investments are "funding new fire trucks, school expansions, and road improvements across the city."
The Stargate Project and the Permitting Loophole
As President Trump seeks to fast-track AI development across the country, he has found a willing ally in Texas governor Greg Abbott, who has previously referred to the industry as the state's "gold rush"—though his enthusiasm has recently dampened in the face of widespread opposition. With some 300 data centers already in operation and 200 more in development, Texas could surpass Virginia as the nation's leading data center market by 2030, according to WIRED.
Amidst the frenzy to capitalize on the AI boom, a regulatory loophole has allowed dozens of data centers like Stargate to quietly construct massive power sources that emit harmful pollutants with little to no public notice, a Floodlight investigation found. Typically, before you can build a major source of new emissions, you have to get a major air permit, which includes extensive environmental reviews and engagement with the local community. But in Texas, regulators have allowed some data centers like Stargate to avoid that process by first obtaining so-called minor air permits—the kind more commonly associated with dry cleaners and autobody shops and rubber-stamped with minimal review.
"Those lower-level permits get granted very quickly and often without the public knowing," says Kathryn Guerra, who spent nearly four years at the Texas Commission on Environmental Quality (TCEQ) before joining the watchdog group Public Citizen. "That feels pretty intentional."
These minor permits—as well as the nondisclosure agreements many developers require in their dealings with local governments and residents—are how communities like Garcia's are left stunned when exhaust stacks pop up in their backyards.
Stargate was first announced in January 2025 as part of a $500 billion joint venture between OpenAI, SoftBank, and Oracle to construct hyperscale AI data centers across the country. Construction was already well underway in Abilene. The 1,100-acre campus, along with its 360-megawatt onsite gas plant, were among the first hyperscale AI data centers to break ground in Texas. A wave of similar proposals has since made the state ground zero for the AI-driven build-out of fossil-fuel power plants across the US.
Economic Promises vs. Environmental Concerns
Lured by prolific gas reserves and an industry-friendly government, AI companies have flocked to Texas seeking to construct what researchers call a "shadow grid" of custom-built power plants capable of fueling entire cities. Jenny Martos, a researcher at Global Energy Monitor, a nonprofit that tracks energy infrastructures worldwide, found that Texas has put more than 80 gigawatts of new gas plants into its construction pipeline, making it second only to China. Roughly half that capacity is reserved for data centers.
"You haven't seen anything like that since the fracking boom," Martos says. She describes the trend as "enormous" and says it risks "locking in fossil fuel for the foreseeable future."
Including Stargate's Abilene campus, at least 15 gas plants tied to data centers are planned for Texas, according to research by energy analysts cited by WIRED.
Texas as Ground Zero for AI-Powered Fossil Fuel Expansion
The following table summarizes the scale of data center and gas plant development in Texas:
| Metric | Value |
|---|---|
| Current data centers in Texas | ~300 |
| Data centers in development | ~200 |
| New gas plant capacity in pipeline | >80 GW |
| Gas capacity reserved for data centers | ~40 GW (half of pipeline) |
| Gas plants tied to data centers planned | At least 15 |
| Stargate campus size | 1,100 acres |
| Stargate onsite gas plant capacity | 360 MW |
| Projected market rank by 2030 | Could surpass Virginia as #1 |
These figures highlight the immense scale of the build-out. For enterprise technology leaders, the implication is clear: the AI boom is driving an unprecedented expansion of fossil-fuel infrastructure, with significant regulatory and reputational risks for companies involved. The use of minor air permits to bypass environmental review means that many projects may face future legal challenges or public backlash, potentially disrupting operations and supply chains. The situation in Texas serves as a cautionary tale for any region courting large-scale data center investment without robust environmental oversight.
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