AUSTIN, Texas — Texas is in the midst of an unprecedented data center boom, with at least 248 new projects planned statewide on top of 335 already operating — and 86 of those planned projects are in North Texas, according to an analysis by The Texas Tribune.
The surge, driven by exploding demand for artificial intelligence computing, has state and local officials scrambling to address the strain on water and energy resources. Researchers at the University of Texas estimate data centers could account for 3 to 9 percent of the state's total water use by 2040, up from less than 1 percent today. A single new facility can require an initial fill of 1.5 to 2 million gallons of water for its cooling system — equivalent to the average use of more than 6,000 U.S. households.
The energy demands are even more striking. As of May, the state grid operator ERCOT reported 439 gigawatts of power capacity requested in its queue of large development projects — about one-third of total U.S. power generation and five times Texas's all-time peak demand. An estimated 89 percent of those requests are data centers, most aiming to be operational by 2030.
Governor Greg Abbott has shifted from courting the industry to tightening oversight, recommending the repeal of data center sales tax exemptions that cost the state more than $1 billion per year. The Texas House Chair of Natural Resources said on NBC 5's Lone Star Politics this weekend that new laws are coming for data centers. At the local level, the City of Fort Worth is holding a public open house Tuesday on proposed regulations covering zoning, noise, water use, and business incentives for data centers.
Rachel Hanes, policy director for the Greater Edwards Aquifer Alliance, said the industry has long relied on secrecy. "The industry has long relied on non-disclosure agreements and on not having any rules or requirements for their disclosure and reporting," Hanes told the Tribune. Community pushback is also growing — San Marcos has already passed a citywide ban on new data centers, and College Station's city council unanimously rejected a land sale for one after more than 5,000 residents signed a petition.
