Hill Country city could become home to gas-powered AI data center

Energy Transfer LP News

Hill Country city could become home to gas-powered AI data center
San Marcos City CouncilCloudburst Data CentersAI
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The data center project, proposed on a 200-acre site in south San Marcos, could be operational sometime in 2026.

A data center geared toward serving artificial intelligence companies is being planned for the San Marcos area — and it will be powered by natural gas. The Dallas -based company Energy Transfer LP announced Monday that it has entered an agreement to supply up to 450,000 MMBTu — or million British Thermal Units — per day from its Oasis Pipeline subsidiary to the Denver -based company CloudBurst Data Centers for a data center campus outside San Marcos . The gas will be enough to generate up to 1.

That's a big cat: New bobcat sculpture guards Texas State dorm CloudBurst expects the data center to be operational in the third quarter of 2026, according to the release. Additional details for what CloudBurst calls its “flagship” data center are scarce. The company doesn’t appear to have disclosed exactly where it will be built, or just how large it will be.

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San Marcos City Council Cloudburst Data Centers AI British Thermal Units San Marcos Planning And Zoning Commission Oasis Pipeline Texas State Highlander SM One Highlander SM One LLC Hays Energy CBRE Pedernales Electric Cooperative Reuters John Maberry Donald Germaine Tuff Tuffs Highlander SM One San Marcos Hill Country Dallas Denver Hays County Interstate 35 Grant Harris Road Francis Harris Lane Austin U.S. San Antonio Central Texas Northern Virginia Guadalupe Comal Cloudburst

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