There were more than 2,000 active generation interconnection requests as of April 30, totalling 411,600 MW of capacity, according to grid operator ERCOT. A bill awaiting signature on Gov. Greg Abbott’s desk, S.B. 6, looks to filter out unserious large-load projects bloating the queue by imposing a $100,000 fee for interconnection studies.

Wind and solar farms require vast acreage and generate energy intermittently, so they work best as part of a diversified electrical grid that collectively provides power day and night. But as the AI gold rush gathered momentum, a surge of new project proposals has created years-long wait times to connect to the grid, prompting many developers to bypass it and build their own power supply.

Operating alone, a wind or solar farm can’t run a data center. Battery technologies still can’t store such large amounts of energy for the length of time required to provide steady, uninterrupted power for 24 hours per day, as data centers require. Small nuclear reactors have been touted as a means to meet data center demand, but the first new units remain a decade from commercial deployment, while the AI boom is here today.

Now, Draper said, gas companies approach IREN all the time, offering to quickly provide additional power generation.

Gas provides almost half of all power generation capacity in Texas, far more than any other source. But the amount of gas power in Texas has remained flat for 20 years, while wind and solar have grown sharply, according to records from the US Energy Information Administration. Facing a tidal wave of proposed AI projects, state lawmakers have taken steps to try to slow the expansion of renewable energy and position gas as the predominant supply for a new era of demand.