Siemens Energy Assists Xcel Energy with Meeting Texas, New Mexico Power Demand

Siemens Energy will deliver 10 large-scale gas turbines and associated generation equipment to support Xcel Energy’s two newbuild power plants, reinforcing grid reliability in its Southwest service territory. The new facilities will add 2,088 MW of dispatchable generation capacity, providing flexible on-demand power during peak usage and turbulent market conditions.

Project specifics include:

• Xcel Energy retiring the Tolk Station coal plant in Muleshoe, TX, and installing five Siemens Energy SGT6-5000F gas turbines and five SGen6-1000A generators, producing 928 MW of backup energy to support grid stability.
• The company will also build a new peaker plant in Gaines County, equipped with five F-class turbines and five generators to supply electricity during high-demand periods. The plant will add 1,160 MW of fully dispatchable capacity.

“These power plant projects are part of a broader portfolio that includes 17 new power initiatives and more than 5,000 MW of added capacity by 2030,” said Adrian J. Rodriguez, President, Texas & New Mexico, Xcel Energy. “We are committed to investing in a balanced mix of energy resources that deliver reliable service to our customers and support long-term economic growth across the region. This approach ensures we can meet today’s energy needs with confidence and deliver lasting value, while preparing for the evolving expectations of tomorrow’s customers and communities.”

The first turbine deliveries are scheduled for early 2026, with commercial operation dates aligned to the Southwest Power Pool’s regional planning reserve margin requirements. Xcel Energy’s investment will support surging electricity demand across the region, which is driven by evolving energy needs and the planned retirement of Tolk Station.

Tolk Generating Station in Muleshoe, TX | Image Credit: Xcel Energy

“As demand for reliable energy grows, dispatchable power is no longer optional,” said Luke Baker, Head of Gas Services Sales, North America, at Siemens Energy. “Our turbine technology ensures availability and flexibility in a region critical to America’s energy future.”

SGT6-5000F gas turbines are designed for quick start-up and load changes, low emissions performance, and high operating efficiency. These operational attributes make Siemens Energy’s turbines suitable for peak, intermediate, and baseload applications.

Data Center Buildout

In June 2025, Siemens Energy and Eaton developed a fast-track approach to data-center buildout with integrated onsite power: reliable grid-independent energy supplies and standardized modular systems. The collaboration enables the simultaneous construction of data centers and onsite power generation with grid connection and renewable integration, if required to meet regional regulatory requirements.

The standard configuration of Siemens Energy’s modular and scalable power plant concept generates 500 MW of electricity, featuring SGT-800 gas turbines, redundancy, and additional battery storage systems. The size of the plant can be scaled up and down depending on its modular approach. In the future, it can also operate on hydrogen, if available. It also includes an optional emission-free clean air grid connection that can be installed either during construction or as a retrofit.

Eaton will provide customers with medium- and low-voltage switchgear, UPS, busways, structural support, racks and containment systems, engineering services, and software offerings to protect and enable IT loads from the medium-voltage grid to the chip and help accelerate building and commissioning data centers with skidded and modular designs.