PowerPlay AI and Sharon AI announced plans for a 400-megawatt natural gas-powered AI data center in Abilene, with the project targeting initial power delivery in 2028. PowerPlay, an up-and-coming data infrastructure company, touts the Abilene center as its flagship project.
According to the companies, the joint venture has already completed site feasibility work, infrastructure assessments and land acquisition, and is now advancing natural gas service agreements and selecting an independent power producer.
The data center is designed to rely on behind-the-meter natural gas power rather than ERCOT grid interconnection.
This comes as Gov. Greg Abbott recently directed the Public Utility Commission of Texas and ERCOT to audit all data centers currently requesting grid interconnection before approving additional projects. Projects must be in compliance with regulations specified by Abbott and state regulators, or the projects will be denied grid interconnection.
Luke Velterop, an executive for PowerPlay with a background in energy infrastructure, stated that “power has become the defining constraint of AI.”
“Demand is accelerating faster than the grid can respond,” Velterop noted. “At the same time, federal policy is calling on industry to ‘build, bring or buy’ the energy this demand requires.”
“Together with our joint venture partner, we’re combining a power-first strategy with world-class AI infrastructure expertise to deliver the next wave of energized AI compute at speed.”
PowerPlay’s partner, Sharon AI, is an Australian neocloud company founded in 2024. According to The Economic Times, the “firm specializes in developing AI data centres and high-performance computing platforms.”
While Sharon AI has secured multiple high-dollar deals, it withdrew from a proposed data center project with New Era Energy & Digital earlier this year. It is unclear what prompted the withdrawal, though misleading business information allegedly given by New Era has prompted an investigation into the company.
Recent polling has indicated that Texans oppose data center construction in their communities, and Abbott has also directed the PUCT and ERCOT to “ensure everyday Texans are not burdened with the costs of infrastructure driven by data center expansion, and … residential electric bills are not negatively affected.”
