Google is weighing greater use of natural gas to power its AI ambitions than previously known, according to a report released yesterday.

Why it matters: Google has earned a reputation for prioritizing clean energy in the rush to build data centers, but new findings from a market intelligence firm suggest it may also lean more on a fossil fuel.

Driving the news: Google and Crusoe Energy are partnering to build a data center campus in North Texas called "Goodnight," powered largely by a massive on-site natural gas plant alongside a wind farm, according to permits, satellite images and other documents reviewed by Cleanview, a market intelligence platform.

State of play: A Google representative confirmed to Michael Thomas, Cleanview's founder and report author, that it is partnering with Crusoe on the Texas data center.

• But whether Google will buy power from the gas plant — and if so, how much — remains unresolved, according to the report.

A Google spokeswoman told Axios it doesn't have a contract in place for that plant and declined to comment on if or when it might.

• In an interview last week with Axios about its overall strategy, a top Google executive pointed to the various clean-energy projects it's announced for its data center push, including geothermal, fusion, advanced nuclear reactors, batteries and even carbon capture on gas plants.
• "I do think our public projects provide a good roadmap into how we're thinking about solving this challenge," Michael Terrell, Google's head of advanced energy, said in an interview last week on the sidelines of the CERAWeek energy conference in Houston.
• When asked about where natural gas fits into the company's strategy, Terrell said: "We don't have anything to say on that."

The big picture: The AI race is accelerating, with climate goals slipping further down the priority list as tech companies scramble to secure power, Thomas said.

• Microsoft just announced a gas-powered data center deal with Chevron, and Meta is planning seven natural gas plants in what would be the largest U.S. power facility.

The intrigue: Google leads the tech industry in deploying clean energy for its AI ambitions, which may invite sharper scrutiny of its consideration of natural gas.

• "Many climate activists will see Google exploring natural gas as a sort of betrayal," said Thomas, whose report is one of the most comprehensive reviews of the tech giant's data center strategy to date.
• "There's no doubt that it would be in tension with the company's stated 'moonshot' goal of becoming carbon-free by 2030," he added.

The bottom line: "But it's also true that Google is voluntarily investing more in clean energy technology than almost any other entity — public or private — in the world."

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Two prominent fusion companies — Commonwealth Fusion Systems and Realta Fusion — said today they're teaming up to give the frantic push toward commercial fusion even better odds.

Why it matters: Executives said the successful development of fusion — the energy powering the sun — has become even more urgent at a time when the Iran war has shown a pressing need to diversify energy supplies.

• The war "really does open the world's eyes to what could be a solution that doesn't rely on those geopolitically fraught supply chains," said Rick Needham, Commonwealth's chief commercial officer.
• The companies also want fusion to power AI data centers' massive electricity needs.

Driving the news: Commonwealth and Realta are partnering to design and manufacture high-temperature superconducting (HTS) magnets that Realta will use to speed up the commercialization of its fusion system.

• Commonwealth will develop the magnets for Realta's demonstration prototypes as well as its commercial fusion power plants. Realta aims to launch those plants by the mid-2030s.
• The terms weren't disclosed, but the companies said the deal has the potential to reach a multibillion-dollar value.

Zoom in: "We are a strong believer in the broader fusion industry, and are excited to enable more shots on goal with smart teams pursuing promising alternative approaches," Needham told reporters.

• Realta CEO and co-founder Kieran Furlong said the arrangement will enable his company to build more quickly and cheaply.
• It will reduce the risk around gaining access to high-temperature superconducting materials and magnets, Furlong said.

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HOUSTON — Niron Magnetics, which develops magnets for sensitive systems, is preparing to raise about $500 million at an anticipated $2 billion to $3 billion valuation, two sources tell Axios Pro.

Why it matters: The planned fundraise — roughly six times larger than the company's last disclosed round — reflects surging investor interest in defense tech and domestic supply chains.

The big picture: Magnets typically rely on rare-earth materials, a supply chain dominated by China. But Niron Magnetics has developed a permanent magnet that doesn't require rare-earths.

• Permanent magnets power everything from electric vehicle drive trains to wind turbine generators.

Unlock the whole story, and talk to our sales team about Axios Pro Deals for a steady diet of scoops and smart analysis.

🛢️ Trump frustration: Trump's threat last night to wreck Iran's power infrastructure betrayed his frustration that Iran's leaders don't believe they're losing the war and therefore don't feel motivated to strike a deal.

📈 Tracking oil: Watching shifting crude oil prices — which can change because of demand, market expectations and taxes — can help you understand why costs at the pump might rise, but it's far from a perfect predictor.

👍 OPEC output: Per Reuters, "OPEC+ is likely to weigh a further oil output increase when eight members meet on ‌Sunday, two OPEC+ sources said, a move that would position key producers to add more barrels should the Strait of Hormuz — the world's most important oil route, currently shut by the U.S.-Israeli war with Iran — reopen."

🚗 Uber news: Uber announced today it's expanding its $4,000 "Go Electric" grant initiative to ride-hailing drivers nationwide.

• Why it matters: The company — aware of rising gas prices' impacts — said it's building on the initiative's success in New York City, California, Massachusetts, and Colorado. Another new discount will give drivers up to an additional $1,500 off new Kia EVs as well as $1,000 off any EV bought through TrueCar.

☢️ Texas nukes: Texas Gov. Greg Abbott and the state's advanced-nuclear office announced yesterday they've opened applications for nuclear projects to receive money from the state.

• Why it matters: State officials said the $350 million Texas Advanced Nuclear Development Fund is the country's largest nuclear-related investment.

✍️ Species action: Per E&E News, "In his request that the Trump administration make the extraordinary move of waiving endangered species protections from oil and gas activity in the Gulf of Mexico, Defense Secretary Pete Hegseth contended that existing lawsuits brought by environmentalists had already hampered energy development there."

That's the amount of capital expenditures that Alphabet, parent company of Google, is planning to invest in AI this year, up from $90 billion last year, per the Cleanview report in today's lead story.