As Abilene positions itself at the forefront of a $500 billion artificial intelligence surge, energy leaders say the key to powering that future lies beneath our feet — and in the policies shaping how it’s used. From natural gas to nuclear, the city’s growing role in America’s energy and tech evolution is gaining attention, with industry experts pointing to Abilene as a model for balancing reliability and innovation.
David Holt is the President of Consumer Energy Alliance (CEA), representing families, farmers, small businesses, and energy producers across the country.
“We’re almost a 20 year old organization really focused on what energy means to the whole economy, and giving a voice from the rest of the economy back to policy makers at the local level, state level in Washington for sensible energy policy to make sure that we all have affordable energy, reliable energy, resilient energy and clean energy,” Holt explained.
Holt says recent months have brought a shift in U.S. energy policy, particularly under the Trump administration. He noted that Trump is aiming to leverage American energy resources to combat inflation and reduce energy costs — something that affects everyone.
“You just think about every single thing you see at the grocery store relies on sensible energy policy, including the packaging that all the things are delivered in. So you know, our clothing, our shampoo, our shoes, everything that we see, touch, and feel on a daily basis, relies on sensible energy policy,” Holt said. “So the more we can do to lower energy costs, get the economy going again, and create jobs. In our view, that really begins with a sound energy policy at the state level and in Washington. Too much of the energy policy we saw with the previous four years put layers upon layers of red tape, more and more regulation, making it harder to refine gasoline and diesel, making it harder to find energy, oil, and natural gas in the ground and offshore around the United States. So all those things led to higher energy costs, and that was a problem. So the Trump administration sees that energy as a cornerstone of the economic development of this country, and they put that first.”
No matter your political beliefs or background, Holt argues that sensible energy policy is something everyone should care about.
“Doesn’t matter if you’re a Democrat, Republican, or independent, energy and energy prices and energy reliability impact us all. Whether you live in the inner city, are a farmer, a high-income person, or a low-income person, we really need to make sure we have a sensible energy policy, because those of us who can least afford to pay more for energy are the ones who are hurt the most and first. So an energy policy that helps reduce prices provides an all-of-the-above approach, making sure that our lights stay on,” Holt said.
According to Holt, part of the problem lies in overregulation. Since 2021, energy prices have surged nearly 30%. He attributes some of that to “excessive red tape” from previous years.
“I think the big equalizer for energy is the regulatory environment. What we saw in the previous four years is that a lot of regulations were being thrust upon the American public, adding layer upon layer of redundant regulation, if you will,” Holt explained. “So, removing that red tape, allowing onshore and offshore energy development, looking at ways to get pipelines built, transmission lines built, that allows that energy to come to the market in a safe, affordable way. I think that’s what we’re seeing in this administration, prioritizing that, putting that, if you will, that America first, American energy, kind of stamp on things. It’s a stark contrast from what we saw in the previous four years.”
Holt shared that as energy demand increases, especially with the growth of data centers and electric vehicles, policymakers are exploring solutions, including nuclear power.
“As we’ve added wind and solar, as you mentioned, we’ve gone from 84% of our energy mix coming from oil and gas about 10 years ago to 83% of our energy mix today is oil and gas. So that’s going to continue. Energy demand is going to go up. That’s the key point here. The AI revolution that’s occurring right now. We’re in an AI race with China right now, and this administration recognizes that, and I think part of their desire to leverage US energy is to make sure that the United States wins this AI race,” Holt shared. “In order to do that, we have to have a lot more base load energy, which is primarily going to be natural gas, and very soon it’s going to be more nuclear. We’re seeing the state of Texas in the legislature right now taking a lead on being a big nuclear state. We’ve got to have serious conversations about advanced nuclear being part of our energy mix to make sure that this AI energy demand that’s going to be added on to all the energy demand that we’re already seeing, that we’re able to meet energy needs and we don’t have brownouts or blackouts.”
He believes the ongoing energy transition, driven partly by the AI race, is nothing short of transformational.
“This could be the biggest change in the energy mix and in a whole new economic sector that we’ve seen in a generation, if not multiple generations… How information is used to make all our lives easier, to make innovation easier, technology, manufacturing, all this is going to be powered by AI, and AI is going to be powered by, in this administration and the state of Texas point of view, by American or Texas energy,” Holt said. “That’s largely going to be oil or natural gas, with nuclear, wind, and solar providing a big chunk of that as well. We need to have the infrastructure in place. We need to make sure our grid is resilient. We need to have the transmission lines in place. We need to have the pipelines in place to bring this energy to these new data centers.”
Abilene is poised to play a key role. Holt pointed to Trump’s announcement of a $500 billion AI data center initiative, much of which is set to launch in the Key City.
“We just saw President Trump, just a few weeks ago, announce a $500 billion AI data center surge, largely here in the state of Texas. So we’ve got to meet that challenge. We’ve got to meet those needs without interfering with our home use, with our restaurant use, without raising prices, and without hurting Americans in other ways. So this has to be something that’s kind of a multi-sector, whole-of-government and industry response to make sure that energy is available and there to meet the needs of this growing, revolutionary aspect of our new economy,” Holt expressed.
He says states are now in competition, and Texas must stay ahead to secure its place in the AI-driven future.
“Texas, frankly, is competing with other states. We’ve got Tennessee and Virginia and other states on the East Coast, you have Montana and Wyoming, and Indiana. A lot of states are looking to be a leader in AI. They’re looking at bringing in new energy resources to make sure they can power AI. They’re looking at talking with the AI developers on the best ways to meet those new energy needs,” Holt said. “So it’s really about the state of Texas, from a policy standpoint, staying ahead of it, making sure that these AI data centers want to come to Abilene, want to come to the state of Texas, that we become a major hub for AI, to create all the jobs and all the ancillary jobs that come from it. So it’s a competitive environment, and it’s going to change the way we live and we go to work going forward.”
One part of the solution may already be in place. According to Lancium, the Abilene campus will feature a 1.2-gigawatt interconnect approved by ERCOT, with on-site natural gas generation for added reliability. That setup, Holt says, could help meet massive energy demands without compromising the local grid.
“The keyword that you just said in that sentence is on-site natural gas. So you know what they’re looking at there is having its own natural gas power plant ready and available to power the AI data center there, so that would not necessarily be connected to the grid, or it would be connected to the grid only in emergency high demand days where they could lend some of that natural gas from that power plant back to the grid to make sure that all the customers in the state of Texas are provided sufficient electricity to meet their basic needs,” Holt shared. “So it’s adding additional grid infrastructure power to the overall grid throughout ERCOT, which is the the grid manager for the state of Texas, but also ensuring that these data centers either are connected in a sufficient way to the grid, or have their own little power plant that’s ready and available to power that data center when, if needed.”
He says this model offers a path to long-term grid stability, even as demand surges.
“In 2020, we had about 120 ‘reliability days’ throughout the United States where a local official or a state went to the public and said, Hey, we’re going to have a really hot day. We’re worried about our grid. Conserve electricity right now,” Holt shared. “Last year, we had 340 of these reliability days across the country. So we were already getting ourselves in a situation where we needed more power, more base load power, more natural gas power, added to the energy mix. So that’s coming online here in the state of Texas and around the country to make sure that we have the base load reliability covered. We’re also adding more reliability, more infrastructure, more power to meet the fast-growing needs of the AI industry.”
Holt believes Abilene is already stepping into a leadership role as energy demands continue to evolve.
“This is a revolution. This is a complete game changer for the local economy, the state of Texas, and the nation. It’s going to create jobs, to create economic opportunity, and, you know, even our handheld devices, it’s going to just fundamentally change the way we can do business and think about the world.”