Texas Explores Geothermal and SMRs on State Lands

The Texas General Land Office has initiated a request for information to evaluate the feasibility of developing geothermal energy, small modular nuclear reactors, and natural gas facilities on state-owned lands. Land Commissioner Dawn Buckingham framed these initiatives as distinct technical approaches to the same operational goal: securing reliable baseload power generation within the state. The move signals a strategic shift toward diversifying the energy portfolio beyond traditional hydrocarbon extraction, leveraging state land assets to support long-term industrial and residential demand.

Buckingham emphasized that the Texas economy has historically relied on the active utilization of natural resources, and that halting innovation in energy production is no longer a viable option for the state. The initiative targets the creation of dependable energy sources to power homes, businesses, and manufacturing sectors, positioning state lands as a critical asset for next-generation American industry. By looking beyond conventional sources, the state aims to establish a robust infrastructure that can sustain economic growth for decades.

Grid Demand Driven by Data Centers

Concurrently, the state’s power grid operator, ERCOT, is conducting a comprehensive audit of data center infrastructure in response to an order from Governor Greg Abbott. This survey encompasses 461 data centers, focusing specifically on their water and energy consumption metrics. The scale of this audit reflects the growing strain on the Texas grid caused by high-density computing facilities that require consistent, high-volume power supply.

The audit categorizes the facilities into two distinct groups based on their power requests from the grid. The first group includes 247 large data centers that are seeking at least 75 megawatts of capacity. This level of demand is equivalent to the power consumption of 18,750 Texas homes during peak summer or winter conditions. The second group comprises 214 medium-sized data centers requesting between 25 and 75 megawatts. These figures highlight the significant load impact that the data center sector places on the regional transmission organization.

Strategic Response to Energy Challenges

The push for new energy production on state lands serves as a direct countermeasure to the increasing demand pressures identified in the ERCOT audit. By exploring geothermal and small modular reactor technologies, the state aims to add new, reliable capacity to the grid, reducing reliance on intermittent sources or strained natural gas pipelines. This dual-track approach of auditing existing high-load consumers while developing new generation assets underscores a comprehensive strategy to maintain grid stability.

The Texas Energy and Power Newsletter notes that these developments represent a critical juncture for the state's energy policy. The integration of advanced nuclear and geothermal technologies into the state land portfolio could provide the necessary baseload power to support the expanding data center sector. This strategic alignment between land management, grid operations, and industrial demand positions Texas to address its energy challenges through targeted infrastructure investment and technological diversification.