San Antonio has an opportunity to get data center growth right
San Antonio is grappling with balancing new revenue from data center growth and protecting natural resources. The city needs to establish clear standards for data centers concerning water use, energy consumption, and zoning to ensure they are responsible neighbors and contributors to infrastructure.
San Antonio City Council Member Marc Whyte highlights the city's need to balance generating new revenue with protecting natural resources amidst the growth of data centers. While data centers, such as the CyrusOne facility mentioned, bring significant private investment and tax base expansion, they also pose challenges related to water and electricity consumption.
Governor Greg Abbott has directed state regulators to ensure future data center developments include adequate power generation and water conservation measures, and has supported limiting local tax incentives for these projects. San Antonio Water System notes that newer data centers are adapting to use recycled and closed-loop cooling, reducing potable water demand, and CPS Energy emphasizes the need for careful planning to maintain grid reliability despite increased demand, utilizing tools like demand response programs.
Whyte advocates for San Antonio to establish clear standards for data center locations and construction, including appropriate buffers, thoughtful zoning, and close coordination with utilities. The goal is to ensure accountability and build an economy that supports the next generation without sacrificing the city's values or burdening existing residents with infrastructure costs.