Why Texas Can—and Should—Lead Clean Energy Production

The proliferation of artificial intelligence (AI) has turbocharged the expansion of data centers, which is in turn driving a tremendous surge in electrical power demand—and a rapidly growing need for alternative sources of energy.

In Texas alone, there will be more demand for electrical power over the next five years than the power demands of California and New York combined. Power density in Texas has increased more than ten-fold, driven in large part by the demands of AI and the power consumption needs of data centers.

That level of demand requires data centers to have 24/7 availability and predictable capacity at a massive scale. The power grid isn’t designed to deliver that kind of capacity, which makes nuclear power not just an option as an energy source for data centers, but a necessity to ensure grid reliability.

Last month, the Texas House of Representatives passed House Bill 14, which establishes funding mechanisms and regulatory support to accelerate nuclear energy deployment in the state. The bill creates the underlying structure for the advancement of nuclear power options in Texas.

The bill presents a timely and important opportunity to advance the growth of nuclear energy in the state by creating the Texas Advanced Nuclear Deployment Program to support the development and deployment of advanced nuclear energy technologies in Texas. HB 14 also creates the Texas Advanced Nuclear Development Fund to provide grants and funding for advanced nuclear reactor projects in Texas.

Provident is a founding board member of the Texas Nuclear Alliance (TNA). As the first and only data center developer to join the alliance’s governing board, Provident fully supports nuclear power as a low-emission power option in the state, as well as TNA’s vision for Texas to lead the nation in AI and energy reliability. The creation of the Texas Advanced Nuclear Energy Program will bring reliable, dispatchable power to Texas and ensure the state’s place as the economic hub for the future of nuclear power.

Texas has the industrial base, labor force and political posture to host the manufacturing of small modular reactors (SMRs), which offer zero-carbon, always-on power in a smaller, safer footprint. For energy-intensive industries like data centers, SMRs provide a path to clean, reliable energy without waiting on decades of grid expansion—helping meet sustainability goals while supporting rapid growth in AI, cloud and electrification.

While SMRs won’t be online next year, the preparation for buildout—specifically, the siting requirements, workforce development and permitting—must begin now. Texas is entering a pivotal moment and has a unique opportunity to lead and set the pace for the advancement of nuclear power alternatives.

Texas is experiencing rapidly increasing demand for electricity and needs proven, reliable, and clean energy sources. The rise of AI places unprecedented demands on the state’s electricity infrastructure. Advanced nuclear reactors provide a viable solution, offering the most reliable power generation.

The nuclear option is a bet on power necessity and capability, and one that Texas can win.