
Data centers in Central Texas: Tracking 70+ centers planned or operating in Austin
News ClipAustin American-Statesman·Austin, Travis County, TX·3/24/2026
Central Texas is experiencing rapid growth in data center development, with over 70 projects tracked between Austin and San Antonio, driven by available land, power, and lax regulations. This expansion, however, is raising significant concerns over increased electricity and water consumption, leading to community protests and calls for greater local regulatory authority over these projects. Residents in San Marcos and College Station have successfully blocked proposed data center projects, and several counties are considering moratoriums.
electricitywatergovernmentoppositionmoratoriumzoning
Gov: Texas Capitol, Electric Reliability Council of Texas, San Marcos City Council, College Station City Council, International Energy Agency
Central Texas is rapidly becoming a leading data center market in the United States, with the Austin American-Statesman tracking over 70 planned or operational facilities between Temple and San Antonio by March 2026. This growth is fueled by artificial intelligence demands and developers' preference for Texas's available land, power capacity, incentives, and less restrictive regulatory environment, particularly as other markets like Northern Virginia become saturated. Approximately 5,600 megawatts are currently under construction in the Austin and San Antonio metro areas, indicating significant expansion.
However, this rapid development is not without challenges. Data centers are known for their intensive resource consumption, particularly electricity and water. The Electric Reliability Council of Texas (ERCOT) projects a 71% surge in energy demand by 2031 due to data center growth, with their demand potentially exceeding 22,000 megawatts by 2030. An International Energy Agency report highlighted that a 100-megawatt data center can consume about 2 million liters of water daily. Experts from Carnegie Mellon and North Carolina State Universities also forecast an average 8% rise in U.S. electricity bills by 2030, potentially reaching 25% in major data center markets like Texas.
The environmental and infrastructural strains have sparked local opposition. Advocacy groups and community members have protested at the Texas Capitol, pushing for counties to gain legal authority to regulate data center development or for a statewide pause. Residents in San Marcos and College Station have successfully lobbied their city councils to deny proposed data center projects. Additionally, several counties in Texas are considering moratoriums on data center construction in response to these concerns.