In a significant development for the energy sector, Pacifico Energy, a global investor-owned infrastructure firm, has secured what is described as the largest air pollution permit ever issued in the United States. The permit, granted by the Texas Commission on Environmental Quality (TCEQ) last month, authorizes the construction of the 7.65-gigawatt (GW) GW Ranch complex in Pecos County, near the prolific Permian Basin oilfields. This massive project integrates natural gas-fired power plants with data center operations, positioning Texas as a hub for high-energy-demand industries like artificial intelligence (AI) and cloud computing.
The announcement came via a press release from Pacifico Energy earlier this week, hailing the GW Ranch as “the largest power project in the United States.” This venture is part of a broader surge in gas power infrastructure in Texas, driven largely by the explosive growth in data center needs. According to a recent report from Global Energy Monitor (GEM), Texas added nearly 58 GW of gas power projects to its development pipeline in 2025 alone—surpassing the peak power demand of California, a state with comparable population but far less land area. Globally, only China, with its vastly larger scale (50 times the population and 15 times the landmass), has more gas power projects in development.
The Scale and Environmental Footprint
The GW Ranch’s permit allows for substantial emissions, underscoring the environmental trade-offs of this energy boom. Key details from the TCEQ documents include:
- Greenhouse Gas Emissions: Up to 33 million tons per year of carbon dioxide equivalents, an amount equivalent to nearly 5% of Canada’s total annual greenhouse gas emissions. This positions the facility as one of the world’s largest single-point emitters if fully operational.
- Criteria Pollutants: Over 12,000 tons annually of regulated air pollutants, including particulate matter (soot), ammonia, carbon monoxide, and volatile organic compounds (VOCs). These pollutants can contribute to respiratory issues, smog formation, and other public health concerns in the surrounding areas.
Gabriel Collins, a researcher at Rice University’s Baker Institute for Public Policy and a Permian Basin native, provided context on the project’s gas consumption. At full capacity, the GW Ranch could require 1 to 2 billion cubic feet of natural gas daily—representing 4% to 7% of the Permian Basin’s 2025 production. “Even for something like the Permian, that’s a very material chunk,” Collins noted, emphasizing that while not all announced projects will materialize, even partial builds would create “tremendous facilities.”
Griffin Bird, a research analyst at the Environmental Integrity Project, echoed this sentiment, stating that hyperscale facilities like GW Ranch could rank among the largest emissions sources globally. “I’d be hard-pressed to think of a bigger emitter,” Bird said, highlighting the challenge of tracking the rapid proliferation of such projects.
Texas as the Epicenter of Gas Power Expansion
The GW Ranch is not an isolated case. Texas has become the global focal point for gas-powered data center developments, with nearly half of its upcoming 40 GW of gas projects dedicated to AI and data needs. Other notable announcements in 2025 include:
- Fermi America’s Project Matador: A 6 GW complex near Amarillo, with permit applications submitted in August. If approved, it could emit up to 24 million tons of greenhouse gases annually.
- Chevron’s AI-Focused Plant: In November, the oil giant revealed plans for its first power plant, aiming for up to 5 GW in West Texas to support AI operations.
- Smaller but Swift Projects: Entities like Misae Gas Power received TCEQ approval in just three weeks for a 519 MW facility outside San Antonio, authorizing emissions of 133 tons of toxic particulate matter and 10 tons of formaldehyde yearly.
GEM’s Jenny Martos attributed this boom to “massive fossil fuel infrastructure being developed, often directly at the source of gas supply, to feed speculative AI demand.” Currently, Texas has 11 gas plants under construction, 102 in preconstruction (securing land, permits, and contracts), and 28 announced. If all proceed, this could more than double the state’s existing gas power capacity.
Community and Regulatory Concerns
The rapid permitting process has raised eyebrows among local communities and environmental advocates. In Blue, Texas—a rural area east of Austin—the TCEQ issued a permit in October for the 1.2 GW Sandow Lakes Power Plant, adjacent to North America’s largest Bitcoin mining facility. The permit allows 460 tons of ammonia, 153 tons of soot, 76 tons of sulfuric acid, and 18 tons of hazardous air pollutants annually.
Local residents formed the group “Move the Gas Plant” and requested a public hearing, citing health risks from substances linked to cancer, birth defects, and reproductive issues. However, TCEQ denied the request in a brief 45-second discussion at a public meeting. Spokesperson Travis Brown, a retired Texas Department of Agriculture employee, described the process: “There was essentially zero discussion.” Construction has since begun, with site clearing, worker housing, and power lines already in place.
Bird from the Environmental Integrity Project noted that many data center-linked projects, even those up to 500 MW (enough to power over 200,000 homes), receive permits within a month, often without extensive public input.
Broader Implications for Sustainability and Business
This wave of developments highlights the tension between economic growth and environmental sustainability in the green business landscape. While these projects promise jobs, infrastructure investment, and support for tech innovation, they also lock in long-term fossil fuel dependency at a time when global efforts aim to reduce emissions under frameworks like the Paris Agreement.
Collins cautioned that not all projects will reach full scale, with some potentially overhyping capabilities through PR. Builds may occur incrementally, 100 MW at a time, over years, and full capacity might never be achieved. Nonetheless, the sheer volume discussed—”quantities of energy that were seldom discussed just a few years ago”—demands careful scrutiny.
For eco-business stakeholders, this underscores opportunities in renewable alternatives, carbon capture technologies, and efficient data center designs to mitigate impacts. As AI demand surges, balancing energy needs with emission reductions will be key to sustainable progress.
Originally published by Inside Climate News
