A modular data center project in South Texas is moving forward with a 5MW expansion that integrates on-site natural gas power generation, reflecting a growing shift toward energy-backed infrastructure in AI-driven construction developments.

AZIO AI Corp. is moving ahead with a new phase of infrastructure development in South Texas after receiving a customer order from Envirotech Vehicles, Inc. to expand a modular AI data center site designed around dedicated on-site power generation.

The project targets approximately 5 megawatts (MW) of high-density compute capacity, but the physical scope goes beyond computing equipment. At its core, the development combines modular data center construction with behind-the-meter natural gas power infrastructure, positioning it as a hybrid energy-and-digital build-out rather than a conventional grid-tied facility.

The deployment is subject to standard construction and commissioning requirements, including manufacturing timelines, site readiness, and system integration.

Energy-led construction model at the center of the project

Unlike traditional data center developments that depend on grid interconnection, the South Texas site is structured around on-site natural gas generation. This design allows power production and data center capacity to be developed in parallel rather than sequentially.

From a construction perspective, the model introduces several integrated workstreams:

Installation of modular compute units designed for phased expansion

Construction of on-site gas-fired generation infrastructure

Electrical integration between generation assets and data modules

Supporting civil works, including foundations, access infrastructure, and cooling systems

The approach reflects a growing shift in large-scale digital infrastructure development, where energy availability is treated as a primary design constraint rather than a utility input.

From agreement structure to physical deployment

The latest order follows a non-binding agreement announced in January 2026 between AZIO AI and Envirotech Vehicles, Inc.. That agreement outlined a potential acquisition structure under which EVTV could acquire AZIO AI in full.

Since then, discussions between the companies have continued alongside early-stage infrastructure deployment planning. The focus has gradually shifted toward aligning energy systems with modular compute infrastructure at the South Texas site.

While the transaction framework remains under evaluation, both companies have moved forward with practical construction and deployment planning at the site level.

South Texas site positioned as phased industrial development

The South Texas project is being developed as a phased industrial campus, with each stage tied directly to available on-site energy capacity.

Rather than building a single large facility, the design allows for incremental expansion:

Initial 5MW deployment of modular AI infrastructure

Scalable additions based on power availability and site development progress

Parallel expansion of generation and compute systems over time

This phased approach is increasingly common in energy-backed data center construction, particularly in regions where grid capacity constraints can delay traditional builds.

Natural gas integration drives site independence

A defining feature of the project is its use of behind-the-meter natural gas generation, which provides dedicated power supply independent of external grid constraints.

From a construction and engineering standpoint, this introduces a tightly coupled infrastructure system:

Gas supply sourcing and delivery infrastructure

On-site generation plant construction

Electrical conversion and distribution systems

High-density computing enclosures designed for continuous load operation

Developers say this configuration is intended to improve predictability in both construction timelines and operational scaling, particularly as demand for AI computing capacity continues to rise.

Broader trend toward energy-integrated data center construction

Projects like the South Texas deployment reflect a broader industry shift toward energy-integrated digital infrastructure, where data centers are increasingly built alongside or directly connected to dedicated power assets.

This model is gaining traction as traditional utility interconnection timelines lengthen and high-density computing demand accelerates faster than grid expansion.

In this context, construction is no longer limited to data halls and mechanical systems alone—it now extends into power generation infrastructure, fuel logistics, and energy management systems.

Additionally, the South Texas modular deployment follows a broader trend seen in other U.S. developments, including the planned Southeast Idaho data center campus that is securing natural gas supply to support its own on-site power plant.

Outlook

AZIO AI views the South Texas deployment as an early-stage example of how modular AI infrastructure can scale when directly linked to dedicated energy resources.

If successfully executed, the model could support faster rollout of multi-megawatt computing sites by aligning construction timelines for both power generation and data infrastructure.

For now, the project remains in phased development, with physical deployment tied closely to manufacturing, site preparation, and commissioning milestones across both energy and compute systems.

AZIO AI South Texas Data Center Project — Fact Sheet

Project Overview

• Developer: AZIO AI Corp.
• Customer: Envirotech Vehicles, Inc.
• Location: South Texas, United States
• Project Type: Modular AI data center with integrated on-site power generation
• Initial Capacity: ~5 megawatts (MW) of high-density compute

Core Infrastructure

• Compute System: Modular AI data center units designed for phased deployment
• Energy Source: Behind-the-meter natural gas generation
• Power Model: On-site dedicated generation (not primarily grid-dependent)
• Expansion Model: Scalable in stages based on available energy and site readiness

Development Structure

• Phase 1: 5MW modular deployment
• Future Scaling: Incremental expansion tied to additional power and infrastructure build-out
• Site Strategy: Co-location of energy generation and compute infrastructure

Engineering & Construction Components

• Natural gas power generation facility (on-site)
• Electrical distribution and conversion systems
• Modular data center construction units
• Cooling and thermal management infrastructure
• Civil works (foundations, access, and site preparation)

Strategic Context

• Designed to reduce dependence on traditional grid interconnection timelines
• Aligns compute deployment directly with energy availability
• Reflects growing trend of energy-integrated data center construction models
• Supports high-density AI workloads requiring continuous 24/7 power

Key Significance

• Represents a modular, energy-backed AI infrastructure model
• Combines power generation + compute deployment in a single system
• Acts as a foundation phase for potential larger-scale AI campus development
• Positioned within the emerging shift toward industrial-scale AI infrastructure construction