Data center CEOs testify before Texas Senate committee
Data center executives testified before a Texas Senate committee to address misinformation surrounding AI infrastructure and data center operations. Companies like Lancium and QTS Data Centers presented on their water usage and infrastructure investments. Lawmakers and county leaders raised concerns about water consumption, energy demands, data privacy, and the tax implications of data center projects.
Executives from prominent data center operations in West Texas, including Lancium and QTS Data Centers, testified before the Texas Senate's Water, Agriculture, and Natural Resources Committee in Austin. The marathon hearing aimed to address what committee chairman Sen. Charles Perry, R-Lubbock, described as misinformation regarding AI infrastructure's impact on local resources.
Lancium CEO Michael McNamara, whose company is developing data centers in Abilene, Childress, and Turkey, highlighted investments in sustainable water projects and stated his facilities would use less than 25,000 gallons of water daily, with the system providing a net gain to the water supply. Ryan Kuithe of QTS Data Centers, also building near Turkey, affirmed that his company fully funds its power infrastructure and energy consumption, without relying on resident subsidies.
Lawmakers voiced various concerns, with Sen. Roland Gutierrez, D-Uvalde, questioning data privacy and surveillance. Sen. Lois Kolkhorst, R-Brenham, emphasized the state's desire for responsible partners who will not surveil citizens. Additionally, county leaders from across Texas, including Armstrong County Judge Adam Ensey, testified about the low tax revenues from large data center projects, with one $20 billion project projected to yield only $16,000 in taxes annually for Armstrong County. These leaders expressed a desire for the ability to mandate buffer zones, public meetings, and water limits for developers.
The Public Utility Commission of Texas and the Texas Water Development Board also provided testimony, noting the state's preparedness to expand its water supply following the 2032 Water Plan. The committee is expected to make recommendations to the Legislature next year as lawmakers reconvene in January.