How the Texas data center boom is pushing Austin to new limits on development
The Austin City Council is set to discuss a resolution requiring new data centers to create water conservation plans and potentially ending non-disclosure practices, in response to the industry's rapid growth and strain on resources. This comes as various Texas localities, including Hays County and San Marcos, are taking action like approving moratoriums or banning data centers outright, due to public and governmental concerns over infrastructure strain.
Austin City Council members are considering a resolution that would require new data centers to develop water conservation plans and reevaluate the use of non-disclosure agreements for such developments. This move is a direct response to a call from Mayor Kirk Watson and four council members to address the strain on city resources caused by the rapid expansion of the data center industry, which is fueled by the demand for AI computing power.
The proposed resolution, set for discussion this week, would task City Manager T.C. Broadnax with creating an application process for large water users (over 85 million gallons/year) to implement conservation strategies, such as using reclaimed water or closed-loop cooling systems. It also seeks an annual water usage report on these large customers and an analysis of data center impacts on Austin Water customers, with findings due in December.
Austin's actions reflect a growing trend among Texas local governments to reassess the unchecked growth of data centers. Hays County recently approved a six-month pause on data center approvals, while San Marcos banned them from its zoning code. Taylor and Lockhart are also developing stricter standards or reevaluating zoning codes in response to resident concerns and petitions. Gov. Greg Abbott has also called for a pause on rural data center development and unveiled a regulatory framework for the industry, citing concerns about water shortages and grid stability.