US Data Centers Set for Sevenfold Power Capacity Expansion, Led by Texas

The United States is on the brink of a significant transformation in its data center infrastructure, as a report from Cleanview indicates a planned sevenfold increase in power capacity across the nation. Currently, there are 1,298 operational data centers with a combined capacity of 61,560 megawatts. However, 2,142 additional projects are set to add an astonishing 380,312 megawatts.

Texas Leads the Expansion

Texas is projected to capture between 75 and 100 gigawatts (GW) of this planned capacity, solidifying its position as the leader in data center growth. Virginia and Utah are also notable participants, but neither approaches the scale of Texas's anticipated expansion.

Rise of Behind-the-Meter Projects

A notable trend highlighted in Cleanview's findings is the surge in “behind-the-meter” projects. These data centers are opting to generate their own power on-site, primarily using natural gas turbines, rather than relying on local utilities. Cleanview has identified approximately 59 such projects, which account for around 90 GW of capacity. The urgency for these projects is underscored by the fact that 92% of them have been announced since early 2025.

Challenges Ahead

Despite the ambitious plans, many of the 2,142 projects are still navigating regulatory approval processes, which could pose a bottleneck in their development.

New Insights on Data Centers and Insurance

AI-driven hyperscale data centers in the US are pushing the traditional insurance market to its limits, with insurable values for single facilities ranging from $10 billion to $30 billion. The installed equipment can increase these estimates to between $20 billion and $50 billion.

Global captive insurance premiums have surged to approximately $240 billion across more than 6,000 captives, marking a nearly 20% increase over the past two years. This growth is largely driven by the scale of mega AI data centers.

Aon has expanded its Data Center Lifecycle Insurance Program capacity from $3.5 billion to $5 billion, reflecting a 43% increase in coverage needs. Swiss Re estimates that the construction and operation of AI-driven data centers could generate around $91 billion in cumulative insurance premiums by 2030.

Tech companies are increasingly turning to captive insurance to gain more control over claims management and risk coverage, as traditional policies may not adequately address the unique risks associated with high-capacity AI facilities.