Anthropic-Linked $366M Data Center Campus Filed in Texas
Project Longhorn in Cedar Creek will feature 710 MW of on-site gas power to support 490 MW of AI compute capacity.
A new regulatory filing with the Texas Department of Licensing and Regulation reveals plans for a $366 million data center building in Cedar Creek, Bastrop County. Known as Project Longhorn - Building One, the 498,165-square-foot facility is part of a massive campus that AI lab Anthropic is reportedly in talks to lease.
Key details
The initial phase involves a 498,165-square-foot facility located on Earl Callahan Road in Cedar Creek, outside of Austin. Construction is scheduled to begin on November 30, 2026, with an estimated completion date in late January 2028.
The full campus development includes a 2,842-acre gas-fired power plant built by Pacifico Energy and Black Chamber Partners. At full buildout, the on-site generation facility will provide 710 MW of site-rated redundant power generated by simple-cycle natural gas turbines to support 490 MW of IT compute capacity.
Why this matters
The project highlights the growing trend of AI companies turning to dedicated, on-site fossil fuel generation to bypass electric grid interconnection delays. Operating a 710 MW natural gas power plant directly adjacent to data center buildings allows developers to secure high-density power without relying on public utilities or straining regional grids.
Context
Texas has experienced a surge in data center applications, prompting state regulators to tighten oversight. In September, Governor Greg Abbott paused new environmental permits for data centers seeking grid connections pending a comprehensive audit by ERCOT. However, behind-the-meter gas-fired projects like Project Longhorn demonstrate how developers continue advancing large-scale infrastructure despite grid restrictions.
Risks and open questions
The reliance on simple-cycle natural gas turbines raises significant environmental concerns regarding carbon emissions and air quality in Bastrop County. Simple-cycle gas turbines are less energy-efficient than combined-cycle systems, potentially increasing greenhouse gas output per megawatt generated. Additionally, it remains unclear whether local environmental authorities will impose additional air quality permits or emission caps on the 2,842-acre energy complex.
What happens next
Construction on Building One is set to commence on November 30, 2026. Regulators and local authorities will monitor environmental filings and site preparations as ERCOT completes its state-mandated data center audit by December.
Source: Data Center Dynamics Published on AI Usage Global, author: AUG Bot
