Table of Contents
BYOP aims to resolve critical bottlenecks in the AI race with ‘time-to-power’ for data centers
In sum — what to know:
- 7.65 GW BYOP: Pacifico’s GW Ranch is the biggest example of BYOP, but projects of all sizes are collectively circumventing power-grid constraints;
- Accelerated demand: Data center projects will comprise as much as 7% to 12% of total U.S. electricity by 2028, with data center power demand to 728 TWh projected by 2030.
- Diversity is key: Major data center developers are pursuing a varied and diverse approach to energy, which includes nuclear, solar, wind, battery storage and more.
Texas’ environmental regulator this week issued the largest air pollution permit in the country to Pacifico Ranch’s GW Ranch, which has secured permits for up to 7.65 GW of power generation. This will be the largest BYOP in the U.S., sourcing its power primarily from natural gas turbines, as well as solar and battery storage.
When looking at projections for power generation in the upcoming year, it’s easy to see why the bring-your-own-power (BYOP) trend will continue to pick up momentum. For example, the recent S&P “Global Market Intelligence 2026 US Datacenter and Energy Report” says U.S. power generation will reach 4,400 TWh in 2026, with data center power demand to increase from 2025’s 366 TWh to as much as 728 TWh projected by 2030.
According to the last U.S. Department of Energy report on electricity increases, data centers are projected to consumer 6.7% – 12% of total U.S. electricity by 2028, but those percentages might change, given the acceleration of data center construction expected this year.
Grid struggles, consumer backlash, FERC
The subsequent electrical grid struggles, consumer backlash about electricity prices, and changing FERC policies about co-location are factors driving bring-your-own-power BYOP strategies. With BYOP, developers try to tap a mix of natural gas and other fossil fuels, as well as nuclear, and renewables, as well as shorter-term solutions like gas-powered generators to create an immediate baseload for data centers. One of the more high-profile users of gas-powered generators is Elon Musk, who has been using an army of methane-powered gas turbines for xAI — something that may soon be complicated by new EPA performance standards for stationary combustion turbines.
Though the companies going forward with BYOP are massive and well resourced, they do risk varying degrees of financial exposure because of the long deployment timelines and regulatory hurdles—not to mention persistent technical challenges to each solution, such as small modular reactors (SMRs) and the time-consuming licensing and permitting processes that go with them.
Here’s a rundown of the who’s-who of BYOP:
Amazon’s direct, co-located generation acquired a 1,200-acre data center campus from Talen Energy for $650 million, powered directly by the Susquehanna nuclear plant. The company is also investing in small modular reactors (SMRs) through X-energy, with a goal to bring 5 GW of new energy online by 2039. In addition, Amazon is one of the largest corporate renewable buyers, contracting over 20 GW of clean energy.
Google’s “energy parks” combine data centers with on-site, co-located renewable energy and storage. Google made a $4.75 billion acquisition of Intersect Power’s development assets in late 2025 to secure “clean” energy, and signed a “first of its kind” nuclear deal with Kairos Power to build multiple SMRs, aiming for the first to be operational by 2030, with a capacity of 500 MW. The company aims to run on 24/7 carbon-free energy by 2030.
Microsoft signed the largest power purchase agreement (PPA) in history with Constellation Energy to restart the Three Mile Island nuclear facility in Pennsylvania, securing 835 MW. The company is also blending on-site generation and long-term clean energy procurement (including nuclear), also a founding member of the “Open Power for AI” consortium. Additionally, Microsoft has agreed to buy power from Helion Energy, aiming to produce power from nuclear fusion by 2028.
Meta’s massive “Meta Compute” initiative plans to build tens of gigawatts of infrastructure, including on-site or directly connected power, to support AI workloads. Included are plans for geothermal and solar, such as a $1B investment in 150 MW of geothermal energy in New Mexico. The company is also in talks to secure nuclear power for its AI projects, aiming for early 2030s deployment.
Other developers in the BYOP game are:
Joule Capital Partners, which is developing a 4 GW campus in Millard County, Utah, using Caterpillar natural gas generator sets and 1 GWh of battery storage for prime power;
Prometheus Hyperscale, which has partnered with ENGIE North AmericaandConduit Power to bring new data centers to market with integrated power solutions.
Open Origin, which is focusing on 100% off-grid, Tier IV data centers, leveraging land and technology partnerships to deliver capacity quickly.
Equinix, which is utilizing on-site fuel cells at more than 12 data centers for power.
Also worth mentioning are the power suppliers, such as Constellation Energy, Mainstream Renewable Power, NextEra Energy, CloverLeaf, Bloom Energy, and others that are developing large-scale wind and solar, and cultivating nuclear fleets, to evolve toward reliable, zero-emissions baseload power.
RCRTech will report on all key players throughout the year, to keep subscribers up-to-date on BYOP deals. If your company is pursuing innovation in BYOP, feel free to contact me at sschwartz@rcrtech.com
