Texas Data Center Boom Faces Scrutiny Amid Water Concerns

Austin, Texas – After more than a decade in Texas, Chris O’Riley grew accustomed to seeing reminders about water scarcity. His concern grew when plans emerged for a large data center – facilities that consume an average of 300,000 gallons of water daily – less than six miles from his home. “They share us to be aware of our spending, but then these companies can come and accept it just like that,” O’Riley stated during a demonstration earlier this month against a data center construction in Round Rock, a suburb of Austin.

Texas is rapidly becoming a hub for data centers, fueled by the perception that these projects are essential for maintaining technological advantage, particularly in the burgeoning field of Artificial Intelligence (AI) and bolstering U.S. National security. Industry analyses suggest Texas could surpass Virginia as the largest data center market globally by 2030, benefiting from its expansive land availability and comparatively fewer regulations.

Billions Invested in AI Infrastructure

Significant investment is flowing into large-scale AI facilities, including Project Stargate, backed by OpenAI, SoftBank, and Oracle, and Project Matador, poised to be the world’s largest data center. Both projects, located in West Texas, have received support from the White House.

Citizen Concerns and Environmental Impact

This rapid expansion is not without opposition. Citizens like O’Riley question whether their leaders have adequately considered the consequences for the region and its inhabitants. Concerns center on resource allocation and potential increased costs for water usage.

Studies on the environmental impact of data centers corroborate these fears. Over the next four years, the current rate of AI growth is projected to generate between 24 and 44 million metric tons of carbon dioxide annually, equivalent to adding 5 to 10 million cars to U.S. Roads. Water consumption is also expected to be substantial, ranging from 731 to 1,125 million cubic meters per year – enough to meet the annual needs of 6 to 10 million American homes, according to Cornell University research.

Texas Water System Under Strain

Even before the surge in data center construction, Texas faced a long-term water crisis, with its water system already stretched thin, particularly in arid areas and rapidly growing suburbs. Margaret Cook, an engineer and environmental policy expert, warned that without careful management, the technological push could lead to a “disaster.”

“We are already on that trajectory, due to the lack of transparency and the inability to plan,” Cook, vice president of the Houston Advanced Research Center, explained. Her team estimates data centers could increase the state’s total water demand by approximately three percent in the coming years, adding to existing shortages.

Lack of Transparency Fuels Distrust

Many companies developing these data centers are not disclosing their anticipated water usage, and some have even signed confidentiality agreements with local authorities, limiting public access to information. Garry Oldham, a leader in the movement against data centers in Round Rock, noted, “No one wants this in their neighborhood.” His petition to halt permits for the Skybox facilities was ultimately rejected by the local council.

Oldham added, “I’m not anti-technology, I use AI almost every day, but this should not be built in a state plagued by droughts and with an unstable electrical system.”