Texas is taking a harder look at the rapid spread of data centers across the state, with Governor Greg Abbott ordering a review of the industry as a legislative hearing put its growing footprint under scrutiny. Supporters point to benefits such as scholarships to schools, donations to non-profit organizations and a rise in revenue for local businesses, but questions about the strain on resources are now front and center.
The hearing came just weeks after Abbott directed an audit of up to 300 data center projects across the state. In a letter to the grid operator ERCOT and the Public Utility Commission, the governor ordered a pause until each data center can prove that it is paying its own way rather than shifting costs onto others.
Under the directive, each project would have to show how much energy it is consuming and what is being done to reduce the impacts on supplies and communities. The goal is to make sure the facilities, which can be enormous consumers of power and water, are not quietly straining the grid or local resources.
Officials described the review as a data-gathering exercise that would produce descriptive statistics, such as how much is handed out in tax abatements and how much water is used. That information, they said, could then be brought back to lawmakers to inform their policy priorities and any potential legislation on the issue.
The debate has also taken on a political edge. Abbott's November challenger, Gina Hinojosa, has been an outspoken critic of the rapid growth and has called for a moratorium of her own, turning the pace of data center expansion into a point of contention heading into the election.
Outside the doors of the hearing, the message from residents was that what is being done so far is still not enough. Members of anti-data-center coalitions gathered with banners and signs, many of them traveling across the state to make clear they feel left in the dark, and pressing for a moratorium, collaboration and transparency.
For those opponents, it is the beginning of what they expect to be a long road to the answers they are seeking, with warnings of serious consequences if their concerns go unaddressed. Some cautioned that residents could ultimately be pushed out, saying people may start to leave the state if they can no longer afford to live there.