The Boom and Controversy of Data Centers in Texas

A data center project emerged in a Texas county a year ago, promising a significant boost but providing few specifics. According to a local county commissioner, these projects are often located in urban areas, but now 67% of planned data centers target rural spots like Hood County, Texas. Dave Eagle, an elected official on the commissioners’ court, expressed concern that companies aim to exploit rural communities with vague promises of job creation and community improvement. The proposal in Hood was made by Amazon Web Services, requesting up to 90% in property tax rebates for 30 years. Eagle voted against it, but the project progresses in a neighboring county.

The Rise of Data Centers

Data centers have existed for decades, but the boom in artificial intelligence has intensified demand. AI data centers house powerful computer chips with high electricity consumption. Today, new centers are much larger, with some reaching up to 1,000 megawatts compared to five megawatts two years ago. Hyperscalers like Meta, Amazon, Google, and Microsoft expect to spend $1.5 trillion on data centers through next year.

The objective is to provide computational power for artificial general intelligence, which could advance models to match or surpass human capabilities. AI progress has led to autonomous vehicles and robotic factories and could further drive medical discoveries. However, there are national security and economic concerns about the rapid development of AI infrastructures.

Growing Concerns

Despite benefits, many from both political sides question the quick spread of data centers. Texas resident Jazmin Villegas raised concerns about a proposed data center near her home, worrying about impacts on air, water, and noise pollution. In Chandler, Arizona, residents worried about water use by data centers, though studies show golf courses use twice as much water.

Loudoun County, Virginia, seeing the highest concentration of data centers, faces electricity bill surges due to increased power usage. Concerns are valid, as the community feels uncertain about the future impact.

Political Divides

Last year, Texas Governor Greg Abbott welcomed major tech investments, but recently paused new data center approvals pending audits. Democratic candidate Gina Hinojosa pushes for a temporary moratorium on data centers, making it a campaign issue. Gallup polls show bipartisan agreement with opposition to living near data centers.

Lifelong Republican Dave Lowe in Red Oak, Texas, alters his voting strategy over data center concerns. Residents meet regularly to resist developments, focusing on Compass Datacenters’ plans for 10 centers on rural land.

Amazon spokesperson:

“Amazon evaluates many potential options for development. Hood County was considered but ultimately not selected, receiving no incentives. Our investments focus on job creation and supporting community infrastructure without raising resident costs.”

Compass Datacenters:

“Compass values strong partnerships with residents and officials. We integrate community feedback, like closed-loop water systems, ensuring our growth benefits all stakeholders.”

Gov. Abbott spokesperson:

“Governor Abbott prioritizes Texans. Data center access to the grid awaits audits, ensuring projects fulfill strict community and infrastructure standards.”