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DOE Announces Site Selection for Energy Infrastructure and AI Data Centers on Federal Lands

LCG, July 24, 2025--The U.S. Department of Energy (DOE) today announced the next steps in the Trump administration’s plan to accelerate the development of AI infrastructure by using Federal lands to lower energy costs and help power the global AI race, as previously outlined in President Trump’s Executive Orders on Accelerating Federal Permitting of Data Center Infrastructure, Deploying Advanced Nuclear Reactor Technologies for National Security, and Unleashing American Energy.

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Enbridge Announces 600-MW Solar Project in Texas to Power Meta Data Center Operations

LCG, July 22, 2025--Enbridge Inc. (Enbridge) today announced that it has reached a final investment decision on the Clear Fork solar project located near San Antonio, Texas. Meta Platforms, Inc. (Meta), has signed a long-term contract for all of the renewable power generated from the 600-MW project.

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Industry News

California DWR May Void Sempra Contract, It Says

LCG, Apr. 4, 2002--The California Department of Water Resources has said it may void a $7 billion contract with Sempra Energy because Sempra has not built a 300-megawatt power plant.

According to the DWR spokesman Oscar Hidalgo, Sempra had promised to build the Elk Hills power plant near Bakersfield as part of its deal with the state signed last year. The contract sets the price at which DWR buys power at $160 per megawatt-hour, whereas spot prices are now typically at $30.

Sempra has said that it is proceeding with construction on a more efficient plant than was originally planned at Elk Hills as well as new plants in Mexico and Arizona, but that the contract had not included a requirement concerning Elk Hills. The new Elk Hills plant should be operational by next year. For the moment, Sempra intends to buy power on the open market as DWR traders do, and resell it to DWR. Sempra cites the cost of building a plant as being greater than simply buying power.

The DWR's energy traders insist that "commercially reasonable" progress must be made on Elk Hills within 60 days if they are to honor the contract. Traders with the DWR have cancelled a much smaller, $35 million contract with Soledad Energy because of deliveries of only 20 to 30 percent of the 13 megawatts purchased.
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