Amazon plans 11-million-ton gas plant for Texas data centers

Amazon is bankrolling the construction of a massive new gas-fired power plant in West Texas that could become the single largest source of greenhouse gases in the United States, according to filings reviewed by the New York Times.

The plant, planned for Pecos County, is designed to supply nearly all the electricity for Amazon’s sprawling new data center campus nearby. It would run on natural gas and produce roughly 11 million tons of carbon dioxide annually—more than the entire annual emissions of some small countries. Environmental groups warn that the facility would lock in decades of additional fossil fuel dependence at a time when scientists say the world must slash emissions to avoid catastrophic warming. Texas regulators approved the project in December despite objections from clean energy advocates who argue that renewable energy alternatives could meet Amazon’s needs.

The deal reflects Amazon’s aggressive expansion in the Permian Basin, where cheap land and abundant gas make it a prime location for new industrial development. But it also highlights the company’s growing conflict between its climate pledges and its energy-hungry cloud computing business. Amazon has committed to reaching net-zero carbon emissions by 2040 and powering its operations with 100% renewable energy, yet it continues to invest in new fossil fuel infrastructure. Critics point out that data centers already account for about 1% of global electricity use, and Amazon’s rapid growth in West Texas could push local grid emissions even higher. Local officials, however, see the project as a major economic boost, promising hundreds of construction jobs and long-term tax revenue in a region hit hard by oil industry volatility.

Now the plant must secure final permits and financing before construction begins, a process that could take years. If completed, it would not only cement Amazon’s role as one of the country’s biggest corporate polluters but also set a precedent for how tech giants prioritize cheap, high-carbon energy over clean alternatives. Opponents are vowing to challenge the project in court and push regulators to reconsider. Meanwhile, Amazon’s competitors like Microsoft and Google have already committed to using carbon-free energy around the clock—raising questions about whether Amazon’s latest move will undermine its own sustainability claims.