data center developments

Houston energy firm to develop data center projects in Matagorda County

Two new data center projects are coming to the ERCOT South Zone. Photo via Getty Images.

Houston-based Barrio Energy will develop two new projects for 10-megawatt data center sites in Matagorda County.

Located in the ERCOT South Zone, the projects will assist in powering advanced computing operations, modular data centers and cryptocurrency mining, according to a news release.

Barrio Energy is a provider of energy infrastructure solutions for computing and data centers, and its new locations will build on its existing Texas sites in Monahans, George West, Lolita and Tyler. The Tyler location, a 12-megawatt data center connected to the ERCOT grid, opened in 2024.

“The ERCOT South Zone’s strong infrastructure and access to abundant power make it an optimal location for next-generation computing,” Ivan Pinney, CEO of Barrio Energy, said in a news release. “These developments expand our portfolio and contribute to local economic growth through job creation and technological innovation.”

Operations at the first of the two sites are expected to commence in Q4 2025, with the second site following in Q1 2026.

“We are excited to advance these two high-potential 10MW sites in Matagorda County, which perfectly align with our mission to provide scalable, efficient energy solutions for our clients,” Pinney added in the release.

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A View From HETI

Texas outpaced the rest of the country in a new energy resilience report, despite grid challenges and rising AI demand. Photo courtesy of ERCOT

A new report by mineral group Texas Royalty Brokers ranks Texas as the No. 1 most energy-resilient state.

The study focused on four main sources of electricity in hydroelectric dams, natural gas plants, nuclear reactors and petroleum facilities. Each state was given an Energy Resilience Score based on size and diversity of its power infrastructure, energy production and affordability for residents.

Texas earned a score of 71.3 on the report, outpacing much of the rest of the country. Pennsylvania came in at No. 2 with a score of 55.8, followed by New York (49.1) and California (48.4).

According to the report, Texas produces 11.7 percent of the country’s total energy, made possible by the state’s 141,000-megawatt power infrastructure—the largest in America.

Other key stats in the report for Texas included:

  • Per-capita consumption: 165,300 kWh per year
  • Per-capita expenditures: $5,130 annually
  • Total summer capacity: 141,200 megawatts

Despite recent failures in the ERCOT grid, including the 2021 power grid failure during Winter Storm Uri and continued power outages with climate events like 2024’s Hurricane Beryl that left 2.7 million without power, Texas still was able to land No. 1 on an energy resilience list. Texas has had the most weather-related power outages in the country in recent years, with 210 events from 2000 to 2023, according to an analysis by the nonprofit Climate Central. It's also the only state in the lower 48 with no major connections to neighboring states' power grids.

Still, the report argues that “(Texas’ infrastructure) is enough to provide energy to 140 million homes. In total, Texas operates 732 power facilities with over 3,000 generators spread across the state, so a single failure can’t knock out the entire grid here.”

The report acknowledges that a potential problem for Texas will be meeting the demands of AI data centers. Eric Winegar, managing partner at Texas Royalty Brokers, warns that these projects consume large amounts of energy and water.

According to another Texas Royalty Brokers report, Texas has 17 GPU cluster sites across the state, which is more than any other region in the United States. GPUs are specialized chips that run AI models and perform calculations.

"Energy resilience is especially important in the age of AI. The data centers that these technologies use are popping up across America, and they consume huge amounts of electricity. Some estimates even suggest that AI could account for 8% of total U.S. power consumption by 2030,” Winegar commented in the report. “We see that Texas is attracting most of these new facilities because it already has the infrastructure to support them. But we think the state needs to keep expanding capacity to meet growing demand."

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