Data center developer tried to "razzle dazzle" while sharing few specifics, Texas county commissioner says
A Texas county commissioner recounts how Amazon Web Services approached Hood County with a vague data center proposal while seeking large tax rebates, ultimately deciding not to build there. The article highlights growing public opposition to data centers nationwide, including a specific case in Red Oak, Texas, where residents are fighting a Compass Datacenters project. Texas Governor Greg Abbott has paused approvals for new data centers to assess their impact on the state's power grid.
Hood County, Texas commissioner Dave Eagle recounted a frustrating experience with Amazon Web Services, which he felt presented a vague proposal for a data center project while seeking significant property tax rebates. Eagle voted against the project in Hood County, and Amazon ultimately decided not to build there, stating they explore many sites. The project reportedly moved forward in a neighboring county where AWS secured the desired tax rebate.
This incident highlights a national trend of data center development shifting to rural areas, with over 1,500 new facilities proposed across the U.S. Experts like Michael Webber from the University of Texas note that new AI-driven data centers are significantly larger, consuming vastly more electricity than older facilities. This growth has fueled increasing public concern and opposition, spanning across the political spectrum, with issues ranging from environmental impacts like water usage and pollution to strain on local power grids and rising electricity bills, as seen in Chandler, Arizona, and Loudoun County, Virginia.
In Texas, Governor Greg Abbott, previously a strong proponent of tech investment, has recently shifted his stance, pausing approvals for new data centers connecting to the state's power grid until an audit is complete. His spokesperson emphasized that data centers must pay for their infrastructure, not deplete community resources, or raise costs for residents. Meanwhile, Democratic gubernatorial candidate Gina Hinojosa is advocating for a temporary moratorium on data center construction.
A prominent example of local pushback is in Red Oak, Texas, where residents like Dave Lowe are actively organizing to stop Compass Datacenters from building a massive 800-acre campus. This proposed development, which would include ten two-story data centers on agricultural land, is part of a larger plan that could cover over a quarter of the town. Compass Datacenters maintains that it has worked closely with the community for five years, incorporating feedback into its projects and investing in the electric grid.