Big data makes nearly $500M moves in Central Texas towns amid water concerns

Two new artificial intelligence data center projects with a combined investment of nearly $500 million are advancing in Central Texas, according to recent filings with the Texas Department of Licensing and Regulation (TDLR). The larger of the two, a $470 million AI data center, is entering its next phase in Burlington, a city located in Milam County between Austin and Waco. Concurrently, a new $20 million data center project is slated to begin construction this summer near Dell Technologies' headquarters in Round Rock, a northern suburb of Austin. Both projects, officially registered with the TDLR on April 15, are anticipated to stimulate significant economic growth in their respective Central Texas areas. This includes potential benefits from tax revenues and the creation of local employment opportunities. Despite the projected economic advantages, some Texans in nearby small towns have voiced worries about the potential long-term environmental and infrastructure impacts. Key concerns center on the increased demand these data centers could place on local city water supplies and the broader state electricity grid.