The Data Center Dynamic Is Shifting
Support for data centers in Texas is declining due to major concerns over water and energy supplies, despite previous growth. Former State Representative Jacey Jetton attributes this shift to escalating resource management questions and suggests data centers need to better communicate their solutions, such as providing their own power and recycling water. He also highlights potential benefits like reducing energy costs and tax burdens.
Across the United States, and particularly in Texas, public support for data centers is significantly decreasing. Texas, previously a hub for tech development and job creation, is now facing mounting concerns primarily related to water and energy supplies required by these facilities.
Data centers consume vast amounts of water for cooling and operate with high power demands almost continuously, leading to voter skepticism in water-stressed regions of central and west Texas, and worries about energy price increases.
Former Texas State Representative Jacey Jetton observes a "full-blown pivot" in statewide sentiment against data centers, noting that while initial concerns were about resource management, public opinion has sharply turned. Despite this shift, Jetton points out that former President Trump continues to support data center development. Jetton believes that data center companies have solutions to these concerns, such as providing their own power and recycling coolant water, but need to improve their public relations efforts to convey these benefits. He suggests that data centers could even contribute excess energy to the ERCOT supply, potentially lowering overall energy costs and tax burdens, in addition to their strategic importance for national defense.