# NRG Discusses Texas Expansion That Could Support 2.4 GW of Data Demand

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/53082
Published: 2026-11-10T12:38:56.000Z
Updated: 2026-11-10T12:38:56.000Z
Section: Business

> The existing 1.2-GW gas-fired plant is expected to open in late 2029. No expansion agreement has been completed.

NRG Energy is discussing an expansion of its Texas data center power arrangement that could support as much as 2.4 gigawatts of customer demand, up from the 1.2-GW plan now in place.

The talks involve the unnamed cloud and AI hyperscaler tied to the project. The 2.4-GW figure describes potential demand at the same location; an expansion agreement has not been completed.

NRG announced the initial project Aug. 4 through its Bring Your Own Power (BYOP) initiative, which pairs a data center with dedicated generation. The planned combined-cycle gas plant is expected to begin operating in late 2029. Its contract is set to run for at least 15 years and is backed by an investment-grade guarantee.

NRG expects the project to cost $3.2 billion. At full capacity, the company projects about $500 million in annual adjusted EBITDA and about $375 million in free cash flow before growth. Capacity payments could cover about 95% of the project’s free cash flow, even if the data center’s power use varies.

NRG has secured more than 5.4 GW of turbine and engineering, procurement and construction capacity through partnerships with GE Vernova and Kiewit.

NRG set a 2026 goal of signing long-term BYOP data center contracts for at least 1 GW of capacity. The existing 1.2-GW project is larger than that target. On Sept. 8, the project received conditional inclusion in ERCOT’s Batch Zero interconnection process. Final interconnection approval and a formal expansion agreement remain milestones for the development.