Data centers use lots of water and power, but Texas officials don’t know exactly how much
A proposed data center project in San Marcos, Texas, was denied rezoning by the City Council due to strong resident opposition over concerns about water and power consumption. This local event mirrors broader statewide concerns about data centers' impact on Texas's grid and water resources, prompting Governor Greg Abbott to order a pause on new data center grid connections.
A data center project planned for San Marcos, Texas, was effectively blocked after the San Marcos City Council denied a rezoning request, following strong opposition from local residents including Torrie Martin. Residents expressed significant concerns about the project's potential strain on local water and power resources, citing existing brownouts and water shut-offs in Hays County.
This local decision highlights a growing statewide challenge in Texas regarding the rapid expansion of data centers. Governor Greg Abbott has ordered an effective pause on all new data center projects seeking to connect to the state's power grid until a clearer understanding of their resource consumption can be established. The Electric Reliability Council of Texas (ERCOT) has since approved a new "batch process" for reviewing data center connection requests, replacing its previous project-by-project evaluation. Additionally, Governor Abbott directed ERCOT and the Public Utility Commission of Texas (PUC) to ensure data centers fully fund their necessary electric infrastructure costs, rather than passing them on to homeowners.
Despite these efforts, state officials admit they lack precise data on data centers' water and electricity usage, with a PUC survey yielding responses from less than a third of the state's 341 facilities. Experts like Margaret Cook from the Houston Advanced Research Center explain that water usage varies significantly based on data center size and cooling technology, though projections show substantial increases in demand by 2030. Alison Silverstein, a former energy regulator, noted that high-demand projects like data centers are contributing to rising retail electricity prices across Texas and creating competition for essential equipment and skilled labor.
Ultimately, while ERCOT and utilities are expected to ensure grid reliability, the larger question remains whether Texas communities are willing and able to accommodate the immense economic development promised by the data center industry in the face of resource constraints and rising costs.