Survey finds North Texas communities unprepared for rapid data center growth
A survey by the North Central Texas Council of Governments found that nearly 80% of North Texas cities and counties lack adequate infrastructure for rapid data center growth. Local leaders expressed significant environmental concerns over water and energy usage, noting a projected water demand surpassing supply within 10-20 years. Texas Governor Greg Abbott has directed a pause on new data center developments until comprehensive audits by the Public Utility Commission and Electric Reliability Council are completed.
A recent survey conducted by the North Central Texas Council of Governments (NCTCOG) reveals that North Texas communities are largely unprepared for the rapid expansion of data centers. The survey, which polled 31 local leaders and municipal staff, found that 78% of respondents believe their cities or counties lack the necessary infrastructure to support new data centers without significant upgrades.
Susan Alvarez, NCTCOG's director of environment and development, highlighted critical issues such as water supply, energy capacity, and sustainability measures. The survey indicated that 96% of respondents view data centers as a major strain on water resources, while 81% are concerned about the impact on the power grid. The region's water plan projects that demand will outpace supply within the next two decades, exacerbating existing drawdowns on wells.
While data center developers often promote economic benefits, the survey participants reported insufficient data to accurately assess the long-term value and tax revenues for their communities. Cities and counties are seeking stronger regulatory "guardrails" for new developments, including requirements for water reuse, renewable energy use, and efficiency standards.
In response to these growing concerns, Texas Governor Greg Abbott recently ordered a pause on all new data center developments. This directive mandates that the Public Utility Commission and the Electric Reliability Council conduct comprehensive audits before any new data centers can connect to the state's power grid, signaling a statewide effort to address infrastructure and resource challenges.