Eric Schmidt Launches AI Data Center Venture in Texas

Former Google CEO Eric Schmidt has unveiled an ambitious venture into the AI data center industry, partnering with Texas Pacific Land (TPL) to build a massive data center campus in rural West Texas. The initiative, named Bolt Data & Energy, aims to address the growing energy demands of AI by leveraging TPL’s vast land holdings, abundant water resources, and access to low-cost energy.

Bolt plans to start with natural gas-fired power and expand to include wind, solar, battery, and eventually nuclear energy sources, with a goal of reaching 10 gigawatts of power—enough to electrify approximately 7 million homes. Schmidt emphasizes the need for such infrastructure to keep America competitive in the global AI race, describing AI and advanced robotics as the "Fourth Industrial Revolution."

The Strategic Vision Behind Bolt Data & Energy

Schmidt’s vision for Bolt is deeply rooted in his technical expertise and his belief that energy is the primary constraint in scaling AI. By vertically integrating energy ownership with advanced data infrastructure, Bolt aims to create a platform that is both efficient and resilient. This approach contrasts with traditional data center models that lease space and purchase power from the grid.

The partnership with TPL is critical to this strategy. TPL’s 882,000 acres of West Texas land—more than the entire state of Rhode Island—provide ample space for data center campuses, along with easy access to natural gas and renewable energy resources. Additionally, TPL’s existing water services business, originally designed for oil and gas operations, will support the water-intensive needs of data centers.

The Historical Context of Texas Pacific Land

TPL’s history dates back to 1871 when it was granted a federal charter to build a national railroad from Texas to California. Though the railroad failed, the resulting land grants formed the foundation of the Texas Pacific Land Trust, which later became valuable during the Texas oil boom in the Permian Basin. Today, TPL is a $20 billion market cap company, transitioning from a sleepy trust to a proactive corporation involved in the AI data center space.

CEO Ty Glover highlights the excitement of moving from oil and gas to AI, describing it as a "new frontier" for the company and West Texas. As legacy data center regions like Virginia become saturated, areas like West Texas, with their easier regulatory environments and sparse populations, are becoming more attractive for large-scale data center projects.

Bolt has already raised $150 million in initial capital, with TPL contributing $50 million, including the right of first refusal to supply critical water resources. Schmidt, who serves as chairman of Bolt, co-founded the company with investors Todd Meister and Allan Tessler, a major investor in TPL. The goal is to start with one anchor customer and grow from there, with potential clients including tech giants like Google, Microsoft, and Amazon, as well as AI-focused companies like OpenAI and Palantir.

Schmidt’s long-term vision for Bolt is to ensure that AI develops responsibly, supports American competitiveness, and delivers technology that benefits humanity while minimizing climate impact. The company’s approach, which begins with natural gas but transitions to renewable and clean energy, aligns with Schmidt’s broader goals of advancing AI while addressing environmental concerns.