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Survey: North Texas officials lack infrastructure for data center boom

A recent survey indicates that most local governments in North Texas lack the necessary infrastructure to support the rapid expansion of data centers.

Zane Boyd

September 1, 20262 min read

Infrastructure Planning - illustration, Jake Team LLC

A survey conducted by the North Central Texas Council of Governments reveals that local leaders in the region are facing challenges in preparing for the rapid development of data centers. The study polled 31 municipal staff members and local leaders regarding their capacity to manage this growth.

The results show that 78% of respondents believe their cities or counties do not have adequate infrastructure to support new facilities without significant upgrades.

Susan Alvarez, the director of environment and development at the council, noted that many of the gaps identified in the survey are areas where developers could take action to ensure positive outcomes. She highlighted specific needs, including addressing water supply and usage, ensuring energy capacity reliability, and implementing sustainability measures.

The survey also indicated that respondents have significant environmental concerns, with 96% stating that data centers place the greatest strain on water resources. Additionally, 81% expressed concern over the impact on the power grid.

Regional water planning projects that demand will outpace supply within the next 10 to 20 years due to population growth. Alvarez stated that some communities are already experiencing drawdowns on their wells, making water a significant concern across Texas.

While the Data Center Coalition has described data centers as vital infrastructure for digital resources and noted that artificial intelligence has increased demand, Alvarez pointed out that the technology required for water reuse systems in these facilities consumes more energy.

Regarding economic impacts, respondents indicated that while there is potential for tax revenue benefits, there is insufficient information to assess long-term value for their communities. Alvarez explained that data needed to evaluate the reality of purported tax revenues is currently unavailable.

The survey found that local governments are seeking stronger guardrails for new development, including sustainability requirements such as water reuse, renewable energy use, and efficiency standards.

In response to these issues, Texas Governor Greg Abbott recently directed a pause on all new data center development. This pause will remain in effect until the Public Utility Commission and the Electric Reliability Council complete a comprehensive audit before facilities can connect to the power grid.

Alvarez expressed that local governments would appreciate any state assistance in obtaining the data necessary to support good decision-making, as there is currently a lack of industry data to help assess whether development is appropriate for specific communities.

Source: Denton Record-Chronicle.

Sources

https://dentonrc.com/news/state/survey-finds-north-texas-communities-unprepared-for-rapid-data-center-growth/article_357cb611-42da-449d-bff1-0493ca6c7364.html

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Zane Boyd

Zane Boyd writes about community life, schools, public safety, and local events in Denton.

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