Azio AI Deploys 5MW Modular Data Center at Envirotech Vehicles Site in Texas
May 14, 2026
Azio AI Deploys 5MW Modular Data Center at Envirotech Vehicles Site in Texas
Azio AI has begun delivering 5MW of modular data center capacity to a site in South Texas owned by Envirotech Vehicles, an electric vehicle company that is shifting its focus toward AI infrastructure. The modules will be powered by behind-the-meter natural gas generated on-site at an operational oil field, marking a strategic step in combining energy infrastructure with AI compute deployment.
The deployment follows a non-binding letter of intent (LOI) signed in January 2026, under which Envirotech agreed to acquire Azio AI in a merger valued at $480 million. However, the companies have emphasized that they have not yet reached a definitive agreement on the transaction. The modular data center installation is seen as a way to validate the synergies between the two firms ahead of a potential final deal.
“Since the signing of our LOI, we have been excited to further understand and validate the meaningful synergies between our organizations, particularly at the intersection of energy infrastructure and AI compute deployment,” said Chris Young, CEO of Azio AI. He noted that the company has conducted infrastructure testing using behind-the-meter natural gas power over recent months, which has shown promising efficiency characteristics. “As we deepen our collaboration, we believe these efforts are helping to inform potential next steps in our strategic relationship, subject to customary considerations,” Young added.
Prior to this expansion, Azio AI had already installed a 500kW data center module at the same Texas site, which is co-located at an operational oil field that produces natural gas on-site. The new 5MW deployment represents a tenfold increase in capacity and signals growing confidence in the viability of gas-powered modular data centers for AI workloads.
Azio AI specializes in enterprise GPU servers, AI compute clusters, modular data infrastructure solutions, and sovereign compute services. The company is a spin-out of Azio Corp, a firm best known for manufacturing keyboards and other PC hardware. The Texas project highlights a broader industry trend of leveraging stranded or behind-the-meter energy sources to power energy-intensive AI data centers, especially in regions with limited grid capacity.
Source: datacenterdynamics
