The Texas shale boom is slowing, but AI demand may stabilize the energy industry. US oil production in Texas fell for the second quarter in a row, with the lowest rig count in nearly four years. Diamondback Energy’s CEO pessimistic about the industry’s future due to low oil prices.

New economy deals are revitalizing Texas’ energy sector. The state leads US power generation, with demand increasing. Data centers are expected to drive a surge in power demand, with a significant portion coming from AI development.

Texas oil and gas assets are well-positioned for the shift to new economy applications. Developers are eyeing West Texas for data center and power generation projects. Existing infrastructure and open land make Texas a prime location for AI development.

Data centers are turning to oil and gas assets for power supply. Companies like Vantage and Skybox are investing billions in Texas data centers. Diamondback Energy eyes partnerships with tech giants to tap into the growing demand for data center power.

Texas’ data center-driven gas boom is part of a larger trend in the industry. Meta plans a $10 billion data center in Louisiana powered by natural gas turbines. Texas benefits from its infrastructure and land availability for rapid expansion in the data center market.

Read more at Yahoo Finance: Texas is facing a ‘broken’ shale industry. AI’s power needs could be a lifeline.