Texas Data Centers: On-Site Generation

Status of on-site generation for data centers in Texas

COMPASS | University of Texas Bureau of Economic Geology

February 2026

Grid Impact Analysis

COMPASS collaborates with UT Austin’s Center for Electromechanics (CEM) through a strategic partnership focused on load forecasting, resource assessment, and power and energy systems analysis. This collaboration uses modeling and simulation to evaluate the impacts of new loads and generation resources on the grid, complemented by CEM’s megawatt-scale microgrid test facility. Real-time simulation serves to expedite conducting utility grid scale impact and feasibility assessments.

Motivation

Texas is at the center of a surge in large-load development—from data centers and oil and gas to advanced manufacturing, refining, and mining. While these sectors differ in purpose, they all depend on shared systems: the electric grid, water and land resources, transportation infrastructure, and surrounding communities. This convergence creates both risks and opportunities. Without integrated planning, projects may compete for limited capacity, strain local infrastructure, and amplify environmental and social impacts. The Bureau of Economic Geology brings a uniquely broad and deep research capacity to address this challenge. Our expertise spans oil and gas systems, critical minerals, geothermal energy, carbon capture and storage (CCS), hydrogen, nuclear energy, renewables (wind and solar), groundwater, soil systems, and electric grid integration integration—positioning us to support multi-dimensional, data-informed planning. Built on this foundation, the consortium offers a coordinated, cross-sectoral platform for managing large-load growth. We are energy technology–agnostic and focused on delivering sustainable, reliable, and commercially viable solutions for industry, policymakers, and communities. This partnership forms a strategic alliance that enables coordinated and informed decision making through a platform that continuously evolves with Texas' dynamic energy and resource systems.

Read the COMPASS paper here.