Dr. Margaret Cook and Jennifer Walker
The shine may be coming off the data center boom. More than 70% of Americans oppose the construction of data centers in their communities. Opposition groups are proliferating. Governors and legislatures are pumping the brakes on common tax incentives used to lure companies to their states. Here in Texas, leaders in Hill County implemented a data center moratorium, only to scale it back after a developer filed a $100 million lawsuit.
Underlying each action and reaction is a troubling feeling that this is not an economic wave that will lift our communities, but a technology tsunami that will overtake us. This growth is happening too fast, with too little public information and too little regard for the significant strain it will place on our communities, residents, and critical resources.
Texas is already home to nearly 700 data centers, and scores more are on the way. Major cities have seen much of the growth so far, but small towns and counties are booming, as well.
Leaders and stakeholders from across the state have shared what they are facing and how they are responding, and we’re hearing the same thing over and over: the “move-fast-and-break-things” mentality doesn’t work with public infrastructure. We need more information and more time to do this right. Texas’ essential public resources are at stake if we get this wrong.
Apparently, Gov. Greg Abbott is listening. In a letter last month, he directed the Public Utilities Commission of Texas and ERCOT to take action to “guarantee any data center development does not come at the cost of Texans and our local communities.”
He wants them to ensure data centers will reduce residential electrical bills and that their owners will pay for all necessary electric infrastructure needs. He directed ERCOT and the PUCT to consider any actions they can take to “safeguard Texans, their property, and resources.”
Nearly all of Abbott’s directives reflect a growing consensus that data centers could significantly impact affordability, taxes, landowner rights, energy, and water, and that we all deserve more information and more time to evaluate what our elected officials can and should do to mitigate them.
Based on 2025 projections and other data, HARC estimates data center water use could grow from 25 billion gallons per year to up to 161 billion, depending on how many centers are built and what electricity and cooling technologies are used. And, of course, landowners are concerned about their rights and property.
State leaders are listening, too, and are asking important questions. Unfortunately, most data center companies aren’t providing answers. At the June 23rd Natural Resource Committee hearing, state leaders were told that less than a third of data center companies that were surveyed about their water use by the Texas Water Development Board and the Public Utility Commission had responded to the requests. This is unacceptable. The PUC has reopened the survey and is encouraging data centers to submit responses by July 10.
As HARC and Texas Living Waters outlined in our recent water policy recommendations, the availability and transparency of accurate data are key to addressing citizens’ concerns and providing the insight leaders need to develop common-sense plans and policies to ensure that our communities have reliable water supplies well into the future.
We encourage all our state leaders to continue asking questions and to consider common-sense strategies to protect local water supplies. We know that water supply is a priority for decision makers. The state recently committed to investing $20 billion in water supply and infrastructure over the next 20 years via a landmark, bipartisan water bill. We need to ensure that those funds are invested well. We cannot do that if we do not have good data on water use. When a data center joins a community, it needs to pay its fair share of future water costs. This should not be put on existing water customers who are already facing higher costs on many fronts.
Location is everything. Though most of Texas is water-stressed, some areas are more stressed than others. A one-size-fits-all water approach for data centers won’t work.
And that’s just the water challenge. For each of the unique and significant issues data centers present, Texas must seek and get more information, prioritize collaboration and transparency, and take a common-sense approach that embraces innovation and puts our communities and resources first. That common-sense coalition is growing. The data center companies should take note.
Dr. Margaret Cook is vice president of Water & Community Resilience at HARC (Houston Advanced Research Center). Jennifer Walker is senior director of the Texas Coast and Water Program at National Wildlife Federation.
