Data centers in Texas: State and city leaders squabble over water usage
Hays County, Texas, Commissioners unanimously passed a resolution implementing heightened scrutiny and an emergency review process for high-water and high-electricity industrial developments, including data centers, until December 31. This action follows significant public outcry over water usage concerns and rapid growth, with the county judge emphasizing the need for proactive regulation and the elimination of tax incentives. Texas state leaders are also investigating how to balance data center growth with finite resources, with Governor Abbott calling for data centers to bring their own power, reuse water, and reduce electricity costs.
The Hays County Commissioners in Texas unanimously passed a resolution to implement heightened scrutiny and an emergency review process for new large-scale industrial developments, particularly data centers, that meet specific high water or electricity usage thresholds. The resolution, effective until December 31, comes amidst significant public opposition from residents concerned about rapid growth and the potential for these facilities to deplete precious water resources and strain local infrastructure. Hays County Judge Ruben Becerra stated that the measure sends a clear message to potential investors that projects will face strict oversight and will not receive tax breaks or incentives if they are not "good neighbors."
The county's action follows an emotional public hearing where numerous residents expressed fears that a single industrial user could jeopardize drinking water supplies and impact quality of life. The resolution aims to proactively evaluate the long-term impacts of such large-scale consumption. This local initiative is part of a broader statewide discussion in Texas, where data center expansion has become a contentious political issue.
State leaders, including the Texas House Natural Resource Committee and the House State Affairs Committee, are investigating the environmental strain and resource impact of data centers. State Rep. Erin Zweiner questioned whether data collected by the Texas Water Development Board could help identify optimal water and energy usage for cooling. Governor Greg Abbott has also weighed in, stating that data centers must provide their own power, reuse water, and contribute to reducing electricity costs for residents and small businesses, while threatening to slash incentives.
The Data Center Action Coalition, an advocacy group, views the county's approval of the resolution as a step forward for community-led movements against unchecked data center development, highlighting the growing, bipartisan nature of the opposition across Texas.