New power plant to bring more energy to West Texas

Published June 24, 2026 4:35 PM CDT

Sun shines through clouds over a power substation in Austin, Texas, in 2022. (FOX 7 Austin)

The Texas Energy Fund has approved a loan to construct two new power plants in West Texas.

The two natural gas units will add to Vistra's Permian Basin Power Plant in Ward County and create 860 megawatts of energy.

The announcement comes as leaders look to reinforce the state's energy grid amid growing energy needs from consumers, businesses and data centers.

What they're saying:

"Reliable power is foundational to Texas’ continued growth, and for decades, Vistra has been investing in and growing our generation fleet to help meet rising demand," said Jim Burke, President and CEO of Vistra. "We appreciate the leadership of Governor Abbott, Lieutenant Governor Patrick, Speaker Burrows, the Legislature, ERCOT, and the PUCT in advancing solutions that foster economic growth. This expansion of our Permian Basin Power Plant builds on existing infrastructure and makes efficient use of a proven site to support our state’s expanding energy needs."

Big picture view:

The Texas Tribune reported that there are at least 248 planned data centers set to open in Texas by 2030. One project in Abilene will need up to 1,200 MW of electricity. Another near Amarillo could need up to 11,000 MW of power.

The latest poll from the Texas Politics Project shows a majority of Texans are against data center construction in their community, with those in rural and suburban areas being the most against the construction.

The project is expected to be completed and begin generating power in 2028.

The Source: Information in this article comes from the Office of the Governor and previous FOX Local reporting. 

TexasTechnology