The AI era is giving fracking a second act, a surprising twist for an industry that, even during its early 2010s boom years, was blamed by climate advocates for poisoned water tables, man-made earthquakes, and the stubborn persistence of fossil fuels.
AI companies are building massive data centers near major gas-production sites, often generating their own power by tapping directly into fossil fuels. It’s a trend that’s been overshadowed by headlines about the intersection of AI and healthcare (and solving climate change), but it’s one that could reshape — and raise difficult questions for — the communities that host these facilities.
Take the latest example. This week, the Wall Street Journal reported that AI coding assistant startup Poolside is constructing a data center complex on more than 500 acres in West Texas — about 300 miles west of Dallas — a footprint two-thirds the size of Central Park. The facility will generate its own power by tapping natural gas from the Permian Basin, the nation’s most productive oil and gas field, where hydraulic fracturing isn’t just common but really the only game in town.
The project, dubbed Horizon, will produce two gigawatts of computing power. That’s equivalent to the Hoover Dam’s entire electric capacity, except instead of harnessing the Colorado River, it’s burning fracked gas. Poolside is developing the facility with CoreWeave, a cloud computing company that rents out access to Nvidia AI chips and that’s supplying access to more than 40,000 of them. The Journal calls it an “energy Wild West,” which seems apt.
Yet Poolside is far from alone. Nearly all the major AI players are pursuing similar strategies. Last month, OpenAI CEO Sam Altman toured his company’s flagship Stargate data center in Abilene, Texas — around 200 miles from the Permian Basin — where he was candid, saying, “We’re burning ga …