What solar? What wind? Texas data centers build their own gas power plants

In a statement, Sandow Lakes Energy denied that the power plant will be loud. “The sound level at the nearest property line will be similar to a quiet library,” the statement said.

Sandow Lakes Energy said the plant will support the local tax base and provide hundreds of temporary construction jobs and dozens of permanent jobs. Sandow also provided several letters signed by area residents who support the plant.

“We recognize the critical need for reliable, efficient, and environmentally responsible energy production to support our region’s growth and economic development,” wrote Nathan Bland, president of the municipal development district in Rockdale, about 20 miles from the project site.

Sandow says the plant will be connected to Texas’ public grid, and many supporting letters for the project cited a need for grid reliability. But according to permitting documents, the 1,200 MW plant will supply only 80 MW to the grid and only temporarily, with the rest going to private customers.

“Electricity will continue to be sold to the public until all of the private customers have completed projects slated to accept the power being generated,” said a permit review by the Texas Commission on Environmental Quality.

Sandow has declined to name those customers. However, the plant is part of Sandow’s massive, master-planned mixed-use development in rural Lee and Milam counties, where several energy-hungry tenants are already operating, including Riot Platforms, the largest cryptocurrency mine on the continent. The seven-building complex in Rockdale is built to use up to 700 MW, and in April, it announced the acquisition of a neighboring, 125 MW cryptocurrency mine, previously operated by Rhodium. Another mine by Bitmain, also one of the world’s largest Bitcoin companies, has 560 MW of operating capacity with plans to add 180 more in 2026.

In April, residents of Blue gathered at the volunteer fire department building for a public meeting with Texas regulators and Sandow to discuss questions and concerns over the project. Brown, owner of the wildlife sanctuary, spoke into a microphone and noted that the power plant was placed at the far edge of Sandow’s 33,000-acre development, 20 miles from the industrial complex in Rockdale but near many homes in Blue.

“You don’t want to put it up into the middle of your property where you could deal with the negative consequences,” Brown said, speaking to the developers. “So it looks to me like you are wanting to make money, in the process of which you want to strew grief in your path and make us bear the environmental costs of your profit.”

Inside Climate News’ Peter Aldhous contributed to this report.

This story originally appeared on Inside Climate News.

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