Dallas-Fort Worth data center boom raises energy and water consumption concerns
Data centers are rapidly expanding in Texas, particularly in the Dallas-Fort Worth region, which has been named the No. 1 primary data center market globally. This growth raises significant concerns regarding the substantial energy and water consumption required to operate these facilities. Experts and environmental advocates are weighing in on the strain on the state's power grid and water resources, with predictions indicating massive increases in demand by 2050.
The Dallas-Fort Worth region is a leading hotspot for data center development, with Dallas ranked as the world's top primary data center market. Texas boasts an estimated 465 data centers, with 184 concentrated in Dallas-Fort Worth, driven by the state's pro-business environment, deregulated power grid, and available land.
However, this rapid expansion, fueled partly by the growth of artificial intelligence, is sparking concerns about energy and water consumption. Raul Martynek, CEO of Dallas-based DataBank, highlighted the historical evolution of data centers, while Dan Diorio, Vice President for State Policy at the Data Center Coalition, emphasized their indispensable role in daily life beyond just AI. Projects like NTT Data's 42-acre campus in Garland and the OpenAI, Oracle, and SoftBank 'Stargate Project' in Abilene underscore the scale of development.
Energy demand from data centers is projected to skyrocket, with the U.S. Energy Information Administration forecasting nationwide consumption to reach between 446 and 818 billion kilowatthours by 2050. Geoffery Bailey of Oncor Electric Delivery noted that some large facilities can require two-thirds the power of Fort Worth. Luke Metzger, Executive Director of Environment Texas, warned that this demand could strain the grid, potentially necessitating new gas-burning power plants and advocating for clean energy mandates and efficiency programs. Texas' independent electricity grid allows easier connection for data centers but includes provisions like Senate Bill 6's "kill switch" for emergencies.
Water usage is another critical issue in a water-strained state like Texas. Studies by Environment Texas and UT Austin predict data centers could account for 3% to 9% of the state's water use by 2040, primarily for cooling systems. Google has invested $10 million in Texas water projects to mitigate impacts. While Diorio argued data centers are efficient water users and implement advanced cooling technologies, Metzger countered that the sheer scale and rapid growth differentiate their impact from other industrial users. Despite the challenges, data centers contributed significantly to Texas' GDP and job creation, bringing in over $1.6 billion in tax revenue in 2024.