Design Highlights
- Goldman Sachs is co-leading financing for a 5-gigawatt modular natural gas power project in Texas with Newmark Group Inc.
- The project involves three private power campuses designed specifically for energy-intensive AI operations.
- Each campus will have a capacity of 1.5 gigawatts, with quick power availability bypassing public grid issues.
- The first power is expected to be operational within 24 months, addressing urgent electricity demands.
- South Dallas was chosen for its existing infrastructure, facilitating reliable power delivery for growing tech needs.
Goldman Sachs is diving headfirst into the world of artificial intelligence power with a bold backing for a massive project in Texas. This isn’t small potatoes; we’re talking about a co-lead financing gig alongside Newmark Group Inc. They’re raising hundreds of millions to fund a modular natural gas-fired generation project. The plan? Build private power campuses with a staggering total capacity of 5 gigawatts. Yes, you heard that right—5 gigawatts. That’s enough power to make any data center blush.
These campuses will pop up in south Dallas, where they’ll house data center clusters. Each of the three sites will boast a capacity of 1.5 gigawatts. And let’s be real, these aren’t just cookie-cutter setups. They’re designed with energy-hungry AI operations in mind, leveraging 100-megawatt modules loaded with gas turbines for that sweet baseload power. Reliability is key, so each module also comes with backup turbines. Who doesn’t love a little extra security?
These power campuses in south Dallas are tailored for AI, featuring robust 100-megawatt gas turbine modules with backup for ultimate reliability.
Now, speed is of the essence here. Goldman, along with developer GridFree AI, is pushing to get the initial power online in under 24 months from lease signing. That’s fast. They’re outpacing Texas public grid connection timelines, which is a big deal considering the current strain on the US power system. Aging infrastructure is like a ticking time bomb, facing extreme weather and skyrocketing electricity demand. Blackouts? Rising consumer bills? Nobody wants that.
So why south Dallas? It’s all about location, baby! The area is strategically chosen for its proximity to existing infrastructure, allowing these private power solutions to dodge the public grid’s growing pains. The project is incubated by Montauk Capital, led by CEO Philip Krim, who clearly knows the energy game. He gets it—AI operations are energy-hungry, and this project is designed to match that appetite. GridFree AI has already secured land for two of the three planned sites, which showcases their commitment to rapid development.
Of course, Goldman Sachs hasn’t been keen to spill the beans on their involvement. They’ve declined to comment, which is par for the course in the world of high-stakes finance. But make no mistake; this initiative is vital.
With the demand for AI data centers skyrocketing, these new power campuses could very well be a lifeline for the tech industry, stepping in where the public grid just can’t keep up. Much like how rising medical care prices drive up healthcare costs, surging electricity demand is pushing infrastructure to its limits. The future is here, and it’s powered by natural gas and some savvy financial moves.
