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Texas  + State of Texas  + Industrial  | 
Data center headed to San Marcos

Developer Has Unique Plans for San Marcos Data Center

It’s no secret that data center campuses use a lot of power. Now, a Denver-based developer plans to use natural gas to power a proposed flagship San Marcos hyper-scale data center campus that would serve artificial intelligence companies.

The Austin Business Journal reports data centers have drawn criticism for straining electricity grids because of the huge amounts of power they require. While still uncommon, some are starting to use natural gas as an alternative energy source to help alleviate the issue.

CloudBurst Data Centers Inc. and Energy Transfer have entered into a long-term agreement for Energy Transfer to provide 450 million British thermal units of natural gas per day from its Oasis Pipeline to the future data center campus.

CloudBurst’s agreement with Energy Transfer would result in 1.2 gigawatts of electric power over at least 10 years. Plans for the San Marcos data center are expected to be finalized by the end of the year, with the facility slated to be operational by the third quarter of next year.

Register Today to “Be in the Room” when Michael Brennan receives Connect CRE’s Lifetime Achievement Award and will participate in the Keynote Interview with Kevin Brennan, also of Brennan Investment Group. Join us at Connect Industrial Midwest 2025 on the afternoon of Wednesday, March 5, at Joe’s Live in Rosemont, IL, for this exclusive presentation! 

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About Mike Boyd

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

  • ◦Development