{"id":2080,"date":"2025-10-14T06:00:14","date_gmt":"2025-10-14T06:00:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/2080\/"},"modified":"2025-10-14T06:00:14","modified_gmt":"2025-10-14T06:00:14","slug":"rural-texas-casting-skeptical-eye-on-data-center-openings","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/2080\/","title":{"rendered":"Rural Texas casting skeptical eye on data center openings"},"content":{"rendered":"

Audio recording is automated for accessibility. Humans wrote and edited the story. See our AI policy<\/a>, and give us feedback<\/a>.<\/p>\n

Subscribe to The Y\u2019all<\/a> \u2014 a weekly dispatch about the people, places and policies defining Texas, produced by Texas Tribune journalists living in communities across the state.\n<\/p>\n

LUBBOCK \u2014 Kendra Kay loved growing up in the quiet of West Texas.<\/p>\n

She enjoyed the peacefulness brought in by the open lands. She appreciated how everyone in her community had a purpose and contributed to their way of life. She never wanted the busy noise that came with living in a bustling big city.<\/p>\n

\u201cThat\u2019s why we live here,\u201d Kay, an Amarillo resident, said.<\/p>\n

Now, Kay and others who have chosen the simpler life are worried that the emerging data center industry that has set its eyes on towns across the Panhandle and rural Texas might upend that agrarian bliss.<\/p>\n

\u201cWhat will we have to give up to make sure these data centers can succeed?\u201d she said.<\/p>\n

Data centers have been around since the 1940s, housing technology infrastructure that runs computer applications, internet servers, and stores the data that comes from them. More recently, data centers are powering artificial intelligence and other internet juggernauts like Google, Amazon and Meta.<\/p>\n

These newer sprawling data centers have been sold to communities as a boon to their economic development. Rural Texas has become a prized spot for the businesses rushing into the state.<\/p>\n

Virginia is the only state with more data centers than Texas, which has 391<\/a>. While most are concentrated in North Texas and other major metro areas, they are increasingly being planned in rural areas.<\/p>\n

Affordable property rates, wide open spaces, and welcoming local officials have made remote areas attractive. However, the people who live in those areas have grown worried about what incoming centers \u2014 which can sit on thousands of acres of land \u2014 mean for their lands, homes, and especially, their limited water supply.<\/p>\n

From the Panhandle to the Rio Grande Valley, Texas\u2019 water supply is limited. The strain is particularly acute in rural West Texas and other areas of the state that face regular drought. Data centers, especially those used for artificial intelligence, can use an extraordinary amount of water. The state does not yet require most data centers to report their water usage.<\/p>\n

And with new, bigger data centers coming to the state regularly, there are unanswered questions on where the data centers will get the water they need to stay cool.<\/p>\n

\u201cThese new data centers are enormous,\u201d said Robert Mace, executive director of the Meadows Center. \u201cI don\u2019t know where you get the water to do that in a state that\u2019s already water-stressed, not only from drought, but also rapid population growth in both the population and industry.\u201d<\/p>\n

The concern already exists in the Texas Panhandle, where droughts are common and groundwater supply is declining. There are four data centers planned for the region, including in Amarillo, Turkey, Pampa and Claude. Outside the Panhandle is no different, as AI campuses are expanding in the Permian Basin and 30 data centers are planned for Sulphur Springs<\/a>, a small town in East Texas. Those plans have residents just as worried<\/a>.<\/p>\n

\"The<\/p>\n

The Amarillo skyline on April 9. The city is considering selling some of its water to a data center.<\/p>\n

Credit:
\n Eli Hartman for The Texas Tribune<\/p>\n

In Amarillo, the City Council is considering a water deal with Fermi America, a company co-founded by former U.S. Energy Secretary and Texas Gov. Rick Perry<\/a>. The campus would span 5,800 acres in nearby Carson County and include 18 million square feet for data centers.<\/p>\n

Perry said in June that the project is part of a national push to stay competitive in the global energy and technology sectors.<\/p>\n

A group of residents, including Kay, see the deal as a threat. They protested the deal in front of the Potter County courthouse in late September.<\/p>\n

\u201cWe\u2019re ready for more community conversations about the use of this and with Fermi,\u201d Kay said.<\/p>\n

Trent Sisemore, a former Amarillo mayor who Fermi tapped to lead community engagement, said the data center will offer good jobs. The Panhandle was also chosen, the company said ealier,<\/a> because of its proximity to natural gas pipelines, high-speed fiber and other infrastructure.<\/p>\n

\u201cThe deployment brings tremendous growth and economic stability to our community,\u201d Sisemore said.<\/p>\n

Part of Amarillo\u2019s water supply comes from the Ogallala Aquifer, which is also the main water supply for farmers and ranchers in the region, and it is being drained at rates faster than it can be replenished<\/a>. Agriculture production is the lifeblood of the High Plains, and the success of the region depends on the success of farmers and ranchers. Organizers of the protest at the Potter County courthouse have stressed that incoming data centers are dangerous because of the ripple effect that could happen in a region already under water restrictions.<\/p>\n

Kay pointed to similar communities, such as Lenoir, North Carolina and Henrico County, Virginia, where there is a constant expansion of data centers pushing into rural areas. The expansions bring the likelihood of noise and water pollution, along with a jump in electricity prices with it.<\/p>\n

\u201cWe would never move somewhere that\u2019s more busy and loud,\u201d Kay said. \u201cWe like our quiet streets.\u201d<\/p>\n

\u201cIt\u2019s exciting when it comes to data centers\u201d<\/p>\n

Economic success in Ector County, which includes Odessa, has long been dependent on oil rigs. For local officials, a 235-acre data center in Penwell is a chance to diversify the economy. The abundance of natural gas, untapped land and untreated water, makes the region ideal, said County Judge Dustin Fawcett.<\/p>\n

\u201cIt\u2019s exciting when it comes to data centers,\u201d said Fawcett. \u201cNot only are we using that produced water, we\u2019re also using the excess natural gas we have, so we get to be more efficient with the products we\u2019re mining.\u201d<\/p>\n

With one planned near Odessa, where water supply has been a consistent problem for both quantity and quality, some residents aren\u2019t so sure.<\/p>\n

\u201cWe don\u2019t have an abundance of water out here,\u201d said Jeff Russell, an Odessa resident and former vice president of the Odessa Development Corporation. \u201cWe have an abundance of bad water, but we don\u2019t have an abundance of good water.\u201d<\/p>\n

\"Amarillo<\/p>\n

Amarillo business owners and community leaders tour the Edge Data Center at the Region 16 Education Service Center on March 19. The data center is much smaller than some of the new ones planned for other parts of rural Texas.<\/p>\n

Credit:
\n Angelina Marie for The Texas Tribune<\/p>\n

Fawcett said as officials look into these agreements with data centers, they don\u2019t want to pull water from the municipal supply \u2014 they want to tap into brackish and produced water, which is a byproduct of oil and gas extraction. He hopes that data centers can help them get closer to harnessing produced water on a large scale instead of shooting it back into the earth.<\/p>\n

Just like the Panhandle, there are a slew of data centers either planned or already in dry West Texas. Sweetwater and El Paso have projects in the works, while small towns like Snyder are actively promoting their land<\/a> as a good site for interested businesses.<\/p>\n

Yi Ding, an assistant professor at Purdue University in the School of Electrical and Computer Engineering, said some states have started introducing regulations that prevent data centers from using drinking water. Texas doesn\u2019t, which could become a problem in the near future.<\/p>\n

\u201cThis is a concern in other states,\u201d said Ding, who has researched the environmental impact of data centers. \u201cYou don\u2019t want data centers competing for water used in people\u2019s daily lives.\u201d<\/p>\n

While state planners don\u2019t have a concrete way of tracking<\/a> how much water data centers are using in Texas or how much will be needed in the future, some centers are already looking to make their systems more efficient. This includes using different cooling methods, such as gels, which would decrease the amount of water they use. However, Ding compared it to a theory that says techniques can be improved over time, but it opens the door for more consumption.<\/p>\n

\u201cWhen something becomes more efficient, people use it more,\u201d Ding said. \u201cSo total water consumption doesn\u2019t significantly drop, unless there\u2019s a significant paradigm shift in terms of cooling.\u201d<\/p>\n

Sisemore, who is Fermi\u2019s ambassador to Amarillo, said they want to use water efficiently and protect the resource, and will be using a system that continuously circulates cooling fluid, which uses less water.<\/p>\n

\u201cIf there’s better technology, that\u2019s what we\u2019re going to use,\u201d Sisemore said.<\/p>\n

\u201cWealth here is the water\u201d<\/p>\n

Will Masters has spent the last decade working on ways to replenish the Ogallala Aquifer. His efforts focus on conservation and using other methods, such as playa lakes, to restore the groundwater that\u2019s been drained for more than 50 years.<\/p>\n

The Panhandle area sits on one of the deepest parts of the aquifer, which means it likely has more water than regions further south. Masters, who lives in Amarillo, wants to ensure the Panhandle doesn\u2019t push its geographical luck.<\/p>\n

\u201cWealth here is the water,\u201d said Masters, one of the founders for Ogallala Life, a nonprofit in the region. \u201cIf the water is not here, this area is impoverished.\u201d<\/p>\n

When Amarillo residents held their protest last month, it was to both fight against data centers coming to the city and inform others of the potential risks facing their water supply \u2014 including the risks to the Ogallala Aquifer. Masters said the idea of accepting the water being drained more in exchange for a limited amount of jobs is a bad deal.<\/p>\n

\"Will<\/p>\n

Will Masters, the co-founder of Ogallala Life, listens to community members speak during an event on water usage by the Fermi America data center on Sept. 20.<\/p>\n

Credit:
\n Phoebe Terry for The Texas Tribune<\/p>\n

\u201cCity leaders are trying to find a way to keep their cities alive,\u201d Masters said. \u201cSo we have developers coming in with ideas to bring in money and jobs, temporarily, but it\u2019s causing more problems.\u201d<\/p>\n

Amarillo Mayor Cole Stanley said the council\u2019s priority is protecting the city\u2019s water and to get a good deal if they decide to sell any of it to Fermi for its data center, which will sit about 35 miles north of the city\u2019s limits in Carson County.<\/p>\n

The company has asked for 2.5 million gallons of water a day, and there\u2019s talks it could go up to 10 million gallons. By comparison, Stanley said the city uses 50 million gallons a day.<\/p>\n

\u201cWe\u2019ll charge them more than a regular customer because they\u2019re outside the city and require them to put in their own infrastructure,\u201d Stanley said. \u201cThen we\u2019ll be the beneficiary of the additional jobs that pay well, new residents who build homes and put in additional businesses. It\u2019ll be really good economically for the growth of Amarillo.\u201d<\/p>\n

Stanley acknowledged there will be challenges.<\/p>\n

\u201cThe cons are how fast do you grow? Can those growing pains be forecasted?\u201d he said in an interview with The Texas Tribune. \u201cCan we plan strategically so we\u2019re ready for that amount of growth?\u201d<\/p>\n

Stanley said he has spoken with residents and heard their concerns. At the same time, he said Fermi America will need to lead the conversation since it\u2019s outside city limits. His role comes later, he said, as the business finalizes its plans.<\/p>\n

\u201cFermi America is going to need to step up and hold their own forums and engage with those citizens directly,\u201d Stanley said. \u201cJust like any business deal would be handled. It would be very unfair for me to take a lead in any of those conversations, not knowing who the players are or what the full potential is.\u201d<\/p>\n

Latest in the series: Running Out: Texas\u2019 Water Crisis<\/p>\n

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Sisemore, the community lead for the project, said the U.S. is being outpaced by China when it comes to coal, gas and nuclear generation. He said the next war will be won because of AI, and this is an opportunity for the community to help America win it.<\/p>\n

He said he understands where the trepidation from residents is coming from \u2014 comparing it to when people were concerned about Bell Helicopter, a company focused on producing military aircraft, came to Amarillo. Sisemore wants to help inform them by bringing in experts to give them more information.<\/p>\n

\"An<\/p>\n

An attendee holds a sign boycotting a proposed data center at a protest in front of the Potter County Courthouse on Sept. 20.<\/p>\n

Credit:
\n Phoebe Terry for The Texas Tribune<\/p>\n

\u201cEverybody has a right to their opinion, and we can all learn from each other,\u201d Sisemore said.<\/p>\n

Town halls are expected to begin in November.<\/p>\n

Disclosure: Google has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here<\/a>.<\/p>\n

Shape the future of Texas at the 15th annual Texas Tribune Festival<\/a>, happening Nov. 13\u201315 in downtown Austin! We bring together Texas\u2019 most inspiring thinkers, leaders and innovators to discuss the issues that matter to you. Get tickets now<\/a> and join us this November.<\/p>\n

TribFest 2025 is presented by JPMorganChase.<\/p>\n","protected":false},"excerpt":{"rendered":"Audio recording is automated for accessibility. Humans wrote and edited the story. See our AI policy, and give…\n","protected":false},"author":2,"featured_media":2081,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[2648,918,451,2327,2649,2650,2647,27,1561,29,293,28,1959,1560,292,2646],"class_list":["post-2080","post","type-post","status-publish","format-standard","has-post-thumbnail","category-texas","tag-amarillo","tag-economy","tag-energy","tag-environment","tag-panhandle","tag-potter-county","tag-rick-perry","tag-texas","tag-texas-government","tag-texas-headlines","tag-texas-legislature","tag-texas-news","tag-texas-panhandle","tag-texas-policy","tag-texas-politics","tag-water-supply"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/2080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=2080"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/2080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/2081"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=2080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=2080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=2080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}