Poolside Unveils 1.2-GW Texas AI Campus as Water and Grid Fears Dog Data Centers
Updated
Updated · Forbes · Jun 2
Poolside Unveils 1.2-GW Texas AI Campus as Water and Grid Fears Dog Data Centers
3 articles · Updated · Forbes · Jun 2
Summary
Project Horizon is rising near Fort Stockton as a 1.2-gigawatt AI campus designed to blunt backlash by locating 25 miles from town on a 559-acre site in unincorporated Pecos County.
Poolside says the campus will avoid local grid strain and municipal water use by generating power behind the meter and cooling chips with a closed-loop liquid system fed by non-potable groundwater.
Daily cooling demand is roughly equal to irrigating two acres of West Texas alfalfa, while the power plan starts with natural-gas turbines, battery storage and a backup grid interconnection.
The project is planned in eight phases, with 7 gigawatts of additional power potential identified; Poolside says generator partnerships could bring equipment online in a little over a year despite turbine shortages.
Local hiring and training with Midland College, plus company-provided worker housing, are central to Poolside's pitch that West Texas can host AI infrastructure without the community disruptions seen in other states.
This collapsed AI project revealed fatal water miscalculations. Are other massive data centers making the same promises on borrowed time?
How did a failing AI model and impossible water claims nearly unlock a $2 billion investment from top tech investors?
Project Horizon’s $2 Billion Collapse: Lessons from the Permian Basin’s AI Data Center Bust and the Resource Crisis Facing Texas
Overview
In early 2026, Project Horizon faced a major setback when a $2 billion deal with Nvidia collapsed, creating a significant funding gap and plunging the project into uncertainty. This forced Poolside Infrastructure Company to urgently seek new partners and an anchor tenant, as lenders now demand long-term contracts from reliable firms before providing capital. With progress stalled, the future of the massive data center development hangs in the balance. Poolside must now prove strong demand for its AI models and overcome complex power procurement challenges, all while navigating a tough financing climate and the risk of the project remaining unfinished.