Texas data center secures Cummins natural-gas generator backup for on-site power resilience.
Cummins Inc. has announced an agreement with Circe Energy to provide high-powered, high-efficiency natural gas generator sets to support a behind-the-meter microgrid solution for Circe Energy's High-Performance Computing data center in Texas. Deliveries are scheduled from 2026 through 2030 and will include Cummins' HSK78 and QSK60 generator set platforms.
This partnership reflects Cummins' expansion into the North American data center market at a critical moment. Texas's main grid operator predicts power demand will nearly double by 2030, driven in part by requests from large users including data centers, crypto mining facilities, hydrogen production plants, and oil and gas companies. The demand acceleration follows President Donald Trump's announcement that Stargate—a joint venture between OpenAI, SoftBank, and Oracle—will invest up to $500 billion in AI-related infrastructure, with Texas serving as the primary hub. Oracle CEO Larry Ellison stated that the venture has already begun construction on 10 data centers in the state, with 10 more planned. Each building will occupy half a million square feet.
Data centers are energy-intensive facilities that operate 24/7, housing servers and the cooling systems necessary to prevent equipment overheating. Large data centers can require 100 MW or more each, consuming annually the same amount of power as 350,000 to 400,000 electric cars, according to the International Energy Agency. A larger facility can use as much electricity as a medium-sized power plant, the U.S. Energy Information Administration estimates. Texas has attracted rapid data center growth due to relatively cheap energy prices, ease of grid connection, and a business-friendly tax and regulatory environment. As of September 2025, Texas had 279 data centers, with approximately 141 located in the Dallas-Fort Worth area. Each data center typically employs 50 to 150 or more workers, in addition to building and maintenance contractors.
Circe Energy's West Texas campus is designed as a modular deployment platform capable of phased energization beginning in 2027. The platform combines microgrid architecture with HPC-ready powered shell facilities designed for high-density AI computing, liquid cooling compatibility, and long-term scalability. Cummins will support Circe's behind-the-meter power requirements by utilizing two of its high-horsepower natural gas generator sets as the primary power source, reducing reliance on the grid.
"Data center customers are navigating a new power reality where speed, reliability, and availability are just as critical as capacity—and downtime is not an option," said Susan Cleaver, executive director of Cummins Global Power Generation business. "Cummins natural gas power solutions help customers meet unprecedented growth in data demand while closing utility power gaps with dependable on-site generation for large, power-intensive facilities."
Dagan Baroco, chief commercial officer of Circe Energy, added: "AI infrastructure depends on both power availability and delivery timing. Securing prime power natural gas generation solutions from Cummins, combined with our microgrid architecture and powered shell design, enables Circe to deliver scalable AI campus infrastructure on a predictable timeline while providing customers with a reliable and cost-competitive alternative to traditional grid-dependent development."
Zach Gillen, Cummins vice president of distribution business sales and service North America, stated: "With growing demand from AI and high-performance computing, the data center industry needs energy strategies that are both reliable and adaptable. Cummins brings over 100 years of power generation expertise and is uniquely positioned to help customers deploy reliable, scalable energy solutions. From natural gas generator sets and microgrids to system integration and technical support, Cummins helps bring complex power systems online faster and with greater confidence."
The Circe partnership reflects a broader trend in the North American data center market, where customers increasingly seek power solutions that combine efficient and resilient generation capacity, technical system integration, and advanced lifecycle service support. As demand for artificial intelligence and other power-intensive digital infrastructure accelerates, data center developers are increasingly evaluating on-site power generation as part of their energy strategy.
Meanwhile, New York's legislature has approved a one-year moratorium on permits for data centers, pending Governor Kathy Hochul's signature. The bill requires hearings before issuing data center permits and mandates that the Department of Environmental Conservation prepare an environmental impact report on data center development. Proposed amendments to state Public Service Law would require electric corporations, gas corporations, municipalities, and water works corporations to establish independent classifications of service for large energy use facilities, with an adjustment mechanism. The state Public Service Commission would be prohibited from approving rate changes or tariff updates unless data center proposals include such a service classification.
State lawmakers are additionally proposing new sections in the Public Authorities Law authorizing NYSERDA, in conjunction with the federal bulk system operator, the Public Service Commission, and the state Climate Action Council, to determine reasonable energy consumption efficiency goals for data center design and operation, including waste heat recycling. A new section in the Energy Law would require data centers to derive increasing percentages of their electricity from renewable energy systems via on-site production or power purchase agreements. Data centers, including those within the Long Island Power Authority service territory, would be required to provide host communities with residential energy technologies, community infrastructure benefits, and safeguards against adverse impacts on local waters.