Data Center Debates Intensify Over Electricity, Water, and Revenue; San Antonio Examined

The article highlights the intensifying national debate surrounding data centers, particularly their impact on utility rates and natural resources. Residents often express concerns about rising electricity rates due to the substantial power demand of data centers and increased water rates or depletion of sources for cooling. Conversely, proponents argue that data centers can boost revenue for cities, counties, and states. In San Antonio, Texas, where two dozen data centers consume an estimated 324 megawatts, this debate is playing out. Projections show power demand could soar to 2,700 megawatts in two years and up to 3,300 megawatts by 2033. Advocates, citing a San Antonio Report piece and GridCARE's financial analysis, contend that data centers could actually lead to lower rates and generate significant government revenue by leveraging existing grid infrastructure. They suggest one gigawatt of AI data center load could generate roughly $123 million annually after pass-through costs, with zero incremental system costs. This revenue could potentially cut system-wide rates by up to 4.4% (saving an average customer about $64 per year), justify up to $1.45 billion in new infrastructure investment without a rate increase, or achieve both rate reductions and new system investment.