Recently proposed data centers raise concerns about water, growth in Hays County

Recently proposed data center developments in Hays County, Texas, are sparking a debate among local leaders, environmental advocates, and industry officials regarding their long-term impact on Central Texas, particularly concerning water resources. While construction is underway on one new facility near the Hays County line between San Marcos and New Braunfels, critics express alarm over the potential strain on local water supplies and the power production required for these energy-intensive operations. Virginia Parker, Executive Director of the San Marcos River Foundation, voiced concerns about a "huge strain" on water resources, anticipating no slowdown in data center expansion. Hays County Judge Ruben Becerra echoed these sentiments during a KUT Festival panel, stating that "millions of people's drinking water is at stake" and urging more research and planning before additional development proceeds. Conversely, industry proponents like Dan Diorio, Vice President of state policy for the Data Center Coalition, argue that data centers are crucial for the modern economy, supporting essential services from telehealth to financial transactions. He highlighted the need for the U.S. to expand digital infrastructure to maintain global competitiveness, especially with the rapid growth of artificial intelligence. Experts, including Michael Sury, Managing Director of the University of Texas' Center for Analytics and Transformative Technologies, also pointed to significant economic benefits, such as billions in capital investment, high-paying jobs, and a boost to local property tax bases without the typical traffic and noise of other large developments. This discussion occurs amidst new research from the University of Texas at Austin projecting that data centers could consume 3% to 9% of Texas's water by 2040.