Summary
Off-grid gas-to-data projects are finally advancing as AI demand for behind-the-meter power grows, but regulatory hurdles have slowed progress. Project Kilby, twice the size of the hyped Stargate, is nearing FID and could meaningfully disrupt Permian gas flows. The article argues that natural gas, not nuclear, is the near-term solution for AI power needs, benefiting gas turbine suppliers and Permian producers.
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•AI data-center demand is driving the need for giant off-grid gas-to-data facilities where natural gas enters one side and data exits the other.
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•Nuclear power cannot scale quickly enough for AI's electricity urgency, making natural gas the cleanest baseload hydrocarbon for behind-the-meter plants.
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•Regulatory tightening by Texas and federal regulators has slowed big behind-the-meter projects, and none have reached final investment decision (FID) as of mid-2026.
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•Permian Basin spot gas prices have spent most of 2026 in negative territory, consistent with the author's earlier predictions.
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•Project Kilby is twice the size of Project Stargate (Abilene, Texas) and is only months away from FID, with high-profile corporate backers and a strong likelihood of construction.
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•GE Vernova's gas turbine technology (Fulcrum) is positioned as a key enabler for these off-grid projects.