Dallas Fed: Solar Generation a Factor in Texas Data Center Development

A recent report from economists at the Federal Reserve Bank of Dallas discusses the continued importance of utility-scale solar to Texas’ economic development, particularly when it comes to data centers. They note that Texas is the top state for utility-scale solar generation and that, despite current challenges from policy changes at the federal level, the state added as much solar generation in 2025 as it did in 2024 and is expected to add significant additional capacity in 2026. The economists conclude that the state's energy demand will continue to increase over the next five years as a result of “demand from data centers, cryptomining, oil field electrification and new industrial customers”, and that solar will remain “ part of the energy mix and an important driver of data center development in Texas”.


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