The strain on water, energy and the limits of rapid expansion

The rapid expansion of data centers in Texas is prompting concerns about the strain on critical resources, particularly water and electricity. Anne Thornton, a resident of Hunt County, voices her worries about a 285-megawatt data center campus being developed by Core Scientific near her farm, citing potential water shortages during drought conditions and the reliability of the state's electric grid, which has previously experienced blackouts. Texas county governments currently have limited authority over land use, exacerbating concerns among residents like Thornton who fear being left without water or power. While state lawmakers aim to establish Texas as a global data center capital, new projects are increasingly eyeing West Texas and the Permian Basin, with companies like Microsoft, OpenAI, and Meta announcing developments there. The Electric Reliability Council of Texas (ERCOT) is also pursuing a new system of high-transmission power lines, raising questions about whether sufficient power generation can meet this expansion without overwhelming the existing grid. According to Global Energy Monitor, plans for 80.6 gigawatts of power capacity in Texas represent nearly one-third of all US development, with almost half directly intended for data centers. Thomas Gleeson, Chair of the Public Utility Commission of Texas, emphasized the need for data centers to bring their own generation to alleviate grid strain. Furthermore, studies project that Texas data centers could consume between 29 billion and 161 billion gallons of water annually by 2030, a significant increase from current levels. Dan Diorio, Vice President of State Policy with the Data Center Coalition, counters these concerns, asserting that modern data centers employ closed-loop cooling systems and that studies from Virginia and Arizona show data centers using comparable or less water than other industries or large office buildings, while also contributing to lower electric rates for consumers.