Data centers in Texas: State and city leaders squabble over water usage

HAYS COUNTY, Texas - Data centers under fire in Texas.

State and local leaders are working to regulate large-scale water usage from data centers across the state.

On Tuesday, the Hays County Commissioners passed what they call one of the strongest industrial high water use resolutions in the state.

What they're saying:

"We actually live in the county. So please, we are your citizens. I was born here. This is my home. I am fighting for it. Please fight for it with us," said one Hays County resident.

Emotions ran high on Tuesday as the Hays County Commissioner's Court considered a temporary pause to approvals for large-scale, high-water use developments, like data centers.

It comes as Hays County continues to experience rapid growth and increasing demands on its water availability.

"Our community, all these cities, with such precious critical resources, have been petrified by the idea that a specific user, a single industrial user, could wipe out millions of people's drinking water. And ruin their quality of life with electricity and humming and everything else," said Hays County Judge Ruben Becerra.

There was a staggering amount of public comments from residents made against data centers.

"I invite all the commissioners and Judge Becerra to come out to my home and see my land. I want to show you what it's like before the destruction happens," said one nearby resident.

"Data centers are not compatible with life, with us, with Hays County, with all of Texas," said another.

Hays County Judge Ruben Becerra says it is critical to take a proactive approach to evaluating the long-term impacts of large-scale industrial water consumption.

The resolution, which passed unanimously, takes a closer look at those high-water use projects that hit certain threshold requirements for water or electricity usage.

"All the way until Dec. 31, this court has made a very clear message to anyone interested in investing in our community that there will be a high level of scrutiny on what they're doing and there will be a high level of sensitivity and so, if they don't think they're going to be good neighbors, they should reconsider, keep moving," said Becerra.

Projects that trigger any of the thresholds of water or electricity use will trigger an emergency review.

Becerra says there will also be zero tax breaks or incentives for those organizations.

An emergency review board will be established to provide findings on how the developments could impact local infrastructure and public health.

Si Frede, organizer of the Data Center Action Coalition, says approval marks a step forward.

"We've come a long way, because the movement has grown so much in the last year. And it's really composed of people from all different kinds of political affiliations and walks of life. And so, I think politicians can't ignore it or can't sideline it," said Frede.

The state is also working to grapple with the environmental strain that data centers pose and how to regulate them.

The Texas House Natural Resource Committee speaking with water and utility regulators about what's actually known about new projects.

"One of the issues I've been trying to wrap my head around, which you alluded to, is that there is this inverse relationship between the amount of water required and the amount of energy required for cooling at a data center. Are any of the numbers y'all are collecting able to help us understand if there's sort of a sweet spot that uses the less total water for both direct and indirect electric generation uses?" said State Rep. Erin Zweiner, (D) Driftwood.

"No, our survey doesn't get into that level of facility detail," said Temple McKinnon, Texas Water Development Board.

Governor Greg Governor Abbott posted this statement on X.

"Data centers must bring their own power, they must reuse their own water, and they must reduce electricity costs for residential and small business customers. We will slash incentives and protect Texas neighborhoods. Those are bottom line expectations."

"I hope that people that want to invest in this county do is reevaluate. Consider another footprint that has the resources that you think you need, because we believe we don't," said Becerra.

Becerra says Tuesday's measure sends a loud and clear message that our water is not limitless, and our future is worth fighting for.