Google plans to develop data centers in Texas | FOX 7 Austin

News Clip5:11FOX 7 Austin·TX·6/6/2026

Google is investing $10 million in a water impact fund for Texas communities where it plans to expand its data center footprint. The company is addressing water usage concerns and anticipating new state and federal regulations by co-locating new facilities near power plants.

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Google
Gov: Congressman Michael McCaul, House Homeland Security Committee, Texas House Committee

Google has initiated a $10 million water impact fund for communities in Texas, aiming to address increasing concerns over data center water usage and preempt potential state and federal regulations. The tech giant, which already operates data centers in Ellis County and has projects underway in Midlothian and Haskell County, announced plans to build a new complex near Pampa in the Panhandle. This new development will co-locate with power generation plants, a strategy intended to manage the significant electricity demands of data centers, especially those using "coiled airflow systems" for cooling.

Ben Townsend, Google's global head of infrastructure and sustainability, described the fund as a grant program for communities to invest in water infrastructure upgrades and local watershed improvements, such as aquifer storage and recovery or wetlands. He highlighted Google's commitment to environmentally responsible practices, noting that servers are cooled by recirculated water in a closed loop.

Despite these efforts, there is pushback, particularly from rural areas with limited regulations. Congressman Michael McCaul, a tech advocate, emphasized that data centers should be built in welcoming communities that value job creation and economic prosperity. He also linked data center development and computer chips to national security and the "AI arms race," referencing a House Homeland Security Committee hearing on AI growth.

The data center boom has exposed a lack of explicit energy standards and regulations. A congressional report indicated no legally binding energy standards for private sector data center operations, and a MultiState report noted nearly 30 states are advancing new regulations. In Texas, a House Committee hearing earlier this year on AI and data centers suggested that new legislation might be filed in January. Google's water impact fund and conservation plan could potentially serve as models for these upcoming statewide regulations, as the company seeks to encourage "good behavior through example." A state hearing on data centers and water is expected later this month.