Goldman Sachs (GS) is co-leading financing on an effort in Texas to build power generation infrastructure for AI data centers, according to Bloomberg.
Shares in Goldman Sachs were mostly flat on the news.
The investment bank, alongside real estate firm Newmark Group (NMRK), is raising equity and credit lines for the project, developed by GridFree AI. The financing will fund a series of natural gas-fired power generators that will be used to operate a series of data centers south of Dallas, known as South Dallas One.
The project has secured land for two out of three planned sites, each intended to hold 1.5 gigawatts’ worth of power generation, according to Bloomberg.
As the need for electricity in the US has boomed, led by the rapid buildout of data centers and other heavily energy-intensive AI infrastructure, the power grid — stagnant for more than a decade — has been overwhelmed. Timelines for new connections are often years long, forcing Big Tech players to find other solutions.
Many AI players have turned to off-grid “behind-the-meter” power, using colocated power generation equipment such as natural gas turbines to provide energy to their developments directly.
GridFree AI is able to provide power infrastructure within two years, according to the firm’s website.