CloudBurst breaks ground on 1.2 GW AI data center in Texas

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By Conor McNevin
As w.media’s Europe and Americas correspondent, Conor covers the data center industry in the western hemisphere. Conor’s decade long experience spans digital infrastructure, software, cybersecurity, telecom, biotech, and construction.
CloudBurst Executives in Texas | Image Courtesy CloudBurst

CloudBurst Data Centers has broken ground on its first 1.2 gigawatt (GW) “Gigacenter” in Central Texas, according to a LinkedIn post by the firm. 

Located between San Marcos and New Braunfels in Hays County, these gigacenters serve high-density AI and compute workloads. The first phase will deliver 50 megawatts of capacity and is scheduled to come online in Q4 2026.

The company has secured a deal with Energy Transfer LP to provide 450,000 MMBtu/day of natural gas via its Oasis Pipeline, which could generate the full 1.2 GW of “behind‑the‑meter” electricity on-site to power the facility.

 “This is a major step for CloudBurst, a relatively new player in the data‑center space. The company, based in Denver, was founded in 2022 and has explicitly positioned itself as a next‑generation provider for AI and high‑density computing.” 

CloudBurst’s campus design emphasizes modular construction, high rack densities, and rapid deployment enabled by their behind‑the‑meter natural gas plant, which is planned for immediate operation and could later shift to a hybrid power model.

CloudBurst signed a 10‑year supply deal with Energy Transfer to connect a commercial pipeline  directly into a data center. By coupling pipeline gas with data infrastructure, CloudBurst aims to sidestep grid constraints and accelerate time to market for AI infrastructure.

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