Unchecked Data Center Growth Poses Grave Threat to Texas Grid and Water, Public Citizen Says Ahead of TX House Data Center Hearing
Advocacy group calls for community-centered regulations as statewide resistance grows against corporate tax handouts and the strain on local resources
AUSTIN, Texas — Today’s interim hearing of the Texas House Committee on State Affairs is an initial, if overdue, step in examining how to address the rapid expansion of AI data centers, as communities across the state continue to express concerns about the facilities altering their way of life, Public Citizen said.
“Next year’s session of the Texas Legislature will be a crossroads for lawmakers,” said Adrian Shelley, Texas director of Public Citizen. “Will the state take its usual path of putting corporate profits above all else, including people, or will it put community health and safety first? In communities big and small, deep blue and solid red, the concerns about data centers are universal. Rarely is a broad swath of Texans so unified on an issue. The message should be clear: a hands-off, ‘open for business’ approach to this industry will not fly with most Texans.”
Public Citizen has heard residents’ concerns about data centers directly. In addition to organizing last month’s first-ever statewide convening to address data centers,Public Citizen has been active in taking on data centers in these communities:
- Round Rock and San Marcos: Public Citizen has supported residents in Central Texas as they navigate the rapid encroachment of massive data facilities on residential areas, highlighting the need for better siting and noise mitigation. Public Citizen provided guidance to Round Rock residents opposed to the recent approval of the city’s ninth data center and to Hays County residents, home to San Marcos, in their successful fight against one data center and their support for a pending county-wide moratorium on data center development.
- Hood County: Public Citizen supported two attempts by the county’s commissioners to implement a one-year moratorium on data center development. Though strongly supported by residents, the moratorium failed under an implied threat of legal action from the state attorney general’s office, further highlighting the need for regulatory clarity and community-focused regulations.
- San Antonio: Energy usage remains a concern for one of the state’s fastest-growing cities. The municipally owned local utility, CPS Energy, estimates that planned data center projects will require 26,000 megawatts of electricity, an amount that could power approximately 6 million homes. In this water-stressed region, Public Citizen is also advocating for protections for the local water supply. A data center can use millions of gallons of local water in its cooling systems to keep high-powered AI servers from overheating. The recent news about Corpus Christi’s water insecurity is a warning against allowing an industry to pull from scarce water resources in a drought-prone state.
Additionally, Public Citizen has pressed the Texas Commission on Environmental Quality (TCEQ) to closely scrutinize and reject air and wastewater permits required for some data centers to operate. Public Citizen has also published a data center policy guide and another guide solely focused on Texas. These guides aim to help communities push back against data centers.
A recent report by the Texas Tribune indicates that data center developers have pocketed roughly $1 billion in tax break handouts, an amount that the outlet reported likely undercounts the true total.
The purpose of interim hearings at the Texas Legislature is to gather information on an issue designated as important by the leadership of each legislative chamber. The State Affairs committee will use the information gathered to offer recommendations for future legislation. The next regular session of the Texas Legislature will begin next January.