Oracle to Power Texas Data Center with Gas Generators Amid AI Surge

In today's Cloud Wars Minute, I dive into Oracle's bold $1 billion-a-year move to power a massive AI-focused data center in West Texas using gas generators.

Highlights

00:18 — Oracle is set to spend over a billion dollars a year to power a new mega data center in West Texas, using gas generators instead of waiting to be connected to the local utilities. The gas-powered site is being developed by Vantage Data Centers. It will cover 1,200 acres, house 10 data centers, and have a total capacity of 1.4 gigawatts — making it one of the largest in the world.

01:00 — So, why spend a billion dollars a year on power generation? The issue is that obtaining approval for power infrastructure projects of this size using local electricity gridscan take years. The balance between progress and environmental impact is not so straightforward. While gas-generated electricity is cleaner than other fossil fuels, it is still far from clean energy.

01:33 — I reported a few months back on Microsoft's efforts to mitigate the environmental impact of data centers by changing construction methods, while Oracle recently floated the idea of using nuclear power — a much cleaner alternative to gas. I hope that, in the drive for success in a painfully competitive market, these core values and significant concerns for sustainability are not lost.

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