West Texas is set to gain another large-scale artificial intelligence campus after developers unveiled plans for a 400-megawatt behind-the-meter data center project in the greater Abilene area, highlighting the region’s emergence as one of the country’s fastest-growing hubs for AI infrastructure.

PowerPlay AI and an unnamed Nasdaq-listed Neocloud company are developing the project through a joint venture. After months of site studies, infrastructure evaluations and land acquisitions, the partnership has moved beyond early planning and into execution. Developers are now negotiating natural-gas service agreements and preparing to select an independent power producer to provide dedicated energy for the facility.

Phase 1

The first phase of the campus is expected to deliver 400 megawatts of behind-the-meter power by 2028.

The proposed development will rely on on-site generation rather than the traditional grid, a strategy that has gained traction as artificial-intelligence companies race to secure electricity for increasingly power-hungry computing clusters. With transmission interconnection queues stretching years into the future, developers have increasingly turned to natural gas and private generation assets to accelerate deployment.

The site’s location near Abilene offers several advantages, including access to existing natural-gas infrastructure and adjacent fiber networks needed to support large-scale computing operations. The project is also situated in an unincorporated area, allowing developers to avoid many of the zoning hurdles that can slow major industrial construction.

Its arrival adds to a growing concentration of AI-related projects across West Texas, where multiple gigawatt-scale campuses are already operating, under construction or moving through the planning process. The region has become an attractive destination for developers seeking abundant energy resources and land capable of supporting next-generation data centers.

Industry executives increasingly view electricity supply as the principal challenge facing the AI sector as demand for computing power continues to outpace the pace of grid expansion. That dynamic has intensified competition for sites that can quickly deliver reliable power at scale.

PowerPlay AI said the venture is pursuing a power-first development strategy designed to position the campus for future agreements with hyperscalers and other operators of large AI systems.

Texas data center market

The Abilene-area development follows a broader wave of large-scale AI infrastructure projects across Texas, where developers are securing dedicated power capacity to support increasingly energy-intensive computing workloads. In South Texas, the 1 GW Beacon Point AI data center campus in Nueces County recently reached full commercialization after securing a second long-term lease for 352 megawatts of IT capacity, bringing the project’s contracted capacity to 704 megawatts.

Factsheet: Behind-the-meter AI data center campus in West Texas

• Project: Behind-the-meter AI data center campus.
• Location: Greater Abilene area, West Texas.
• Developer: Joint venture between PowerPlay AI and an unnamed Nasdaq-listed Neocloud partner.
• Planned capacity: 400 megawatts.
• Target delivery: 2028.
• Power model: Behind-the-meter generation.
• Current stage: Active execution.
• Completed work: Site feasibility studies, infrastructure assessments, land assembly and acquisitions.
• Ongoing work: Natural-gas service negotiations and selection of an independent power producer.
• Key infrastructure: Existing natural-gas pipelines and adjacent fiber connectivity.
• Site characteristics: Located in an unincorporated area without zoning restrictions.
• Regional context: Near several gigawatt-scale AI campuses that are operating, under construction or proposed in West Texas.