As data center wars intensify, a Dallas startup takes a different approach

As data center wars intensify, a Dallas startup takes a different approach

News ClipDallas News·Dallas County, TX·9/26/2026

Dallas startup Mousterian is developing floating data centers to address environmental concerns, including high electricity and water usage, and community opposition. This innovative design uses surrounding water for cooling, avoids municipal water, and generates less noise, with plans for deployment across the US following a partnership with Samsung Heavy Industries. The initiative comes amidst increasing scrutiny on data center impact, leading to a state moratorium in Texas and other projects being scrapped due to water consumption concerns.

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Gov: Governor Greg Abbott, Gina Hinojosa, James Talarico

Mousterian, a Dallas-based startup, is pioneering a novel approach to data center development by designing facilities that float on water. This strategy aims to mitigate common criticisms leveled against traditional land-based data centers, such as excessive noise, aesthetic issues, and immense consumption of electricity and municipal water. According to CEO and co-founder Min Suh, the floating design integrates the surrounding body of water into a closed-loop cooling system, completely bypassing local water supplies and reducing noise pollution. These facilities are ideally situated near power plants in industrial zones, ensuring easy energy access while minimizing disturbance to residential areas.

The initiative emerges amidst a contentious period for the data center industry, particularly in Texas, a major hub for these facilities. Community outrage over high energy and water demands has led to public meetings in D-FW communities like Red Oak and Keller, and a surprise moratorium enacted by Governor Greg Abbott. This moratorium mandates an audit of pending data center projects, focusing on their cooling systems and water impact. Politicians like Gina Hinojosa and James Talarico are also advocating for stricter water regulations. One controversial project southeast of Dallas, which threatened to deplete Cedar Creek Lake, was ultimately scrapped due to local opposition.

Mousterian, which silently launched last year, is self-funded and employs 10 people, specializing in data center design, engineering, and development. While they also develop land-based facilities, their core focus is on delivering projects with significantly reduced energy and no municipal groundwater usage. The company recently secured a high-profile agreement with Samsung Heavy Industries, one of the world's largest shipbuilders, to jointly develop a fleet of these floating data centers. Samsung will manufacture the vessels in South Korea, with final finishing by Mousterian, likely in Texas or Louisiana. Each floating data center is projected to have a one-acre footprint and a capacity of approximately 50 megawatts.

Mousterian plans to deploy this new fleet across the United States and currently has several projects underway, including a hybrid floating and land-based campus near a power plant in Houston and a "large-scale floating campus" in the San Jose, California area. These floating facilities will source energy independently from the public grid and are designed for exceptional energy efficiency, targeting Power Usage Effectiveness (PUE) scores of 1.15 to 1.2. The company's co-founders, including Min Suh, bring extensive data center experience, with some having worked on Nautilus Data Technologies' pioneering floating data center in California. While experts like Ed Hirs of the University of Houston acknowledge potential challenges such as high development costs and environmental concerns regarding warm water discharge, Mousterian believes its innovative approach and unique site requirements give them an advantage in identifying suitable locations.