Data Center Coalition responds to growing backlash in Texas

The construction of data centers is emerging as a significant political issue across Central Texas and the entire state, drawing criticism regarding their environmental impact. A recent study by University of Texas at Austin researchers projects that data centers could consume between 3% and 9% of Texas's water by 2040, adding to concerns about strain on the state's power grid. In response to growing public opposition, particularly in areas like Round Rock and Hays County, the Data Center Coalition has begun a campaign to counter the negative sentiment. Hays County Judge Reuben Becerra and community advocates have voiced concerns about the substantial water demands of these facilities, arguing they threaten public drinking supplies. Consequently, Hays County Commissioners are currently deferring action on a proposal to temporarily halt permits for developments requiring extensive water use. Meanwhile, residents in Hutto are also actively opposing a proposed data center in their community. Dan Diorio, representing the Data Center Coalition, emphasized the industry's commitment to fair service costs and ratepayer protection, advocating for solutions like innovative partnerships and co-location to manage grid impact. He also highlighted the potential for large data center loads to stabilize grid investment and reduce overall rates. Diorio expressed concern that local moratoriums, which the coalition is actively trying to prevent, could create economic uncertainty and deter broader development. Texas lawmakers, including the House State Affairs Committee, are examining the broader impacts of the booming data center sector on the state's quality of life and finite resources. Diorio acknowledged the need for robust stakeholder engagement and a balanced approach to regulation, suggesting that new rules are a reasonable subject for discussion to ensure sustainable development that addresses both industry needs and resident concerns. The coalition's public education campaigns are underway, anticipating continued debate through the upcoming legislative session in Austin.