The rapid expansion of artificial intelligence (AI) technologies has led to a significant increase in the construction of data centers, particularly in Texas. These facilities, essential for processing vast amounts of data, are becoming major consumers of energy and water resources, raising environmental and community concerns.
The Rise of AI Data Centers in Texas
Texas has emerged as a prime location for AI data centers due to its favorable business climate, abundant land, and proximity to energy resources. Companies like Meta Platforms have announced substantial investments in the state. In October 2025, Meta committed $1.5 billion to build a new data center in El Paso, marking its 29th globally and third in Texas. This facility is designed to support AI workloads and can scale up to a 1-gigawatt capacity, making it one of the largest planned data centers in the U.S. The project is expected to create approximately 100 permanent jobs and employ over 1,800 construction workers at peak development. Meta cited the region’s strong electrical grid and skilled workforce as key factors in its site selection and plans to match the center’s energy use with 100% renewable sources. The facility will feature water-efficient cooling systems and aims to restore twice the amount of water it consumes, exceeding its 2030 water-positive goal. Meta’s total investment in Texas, including this project, now exceeds $10 billion, with over 2,500 employees across the state. ([reuters.com](https://www.reuters.com/business/meta-commits-15-billion-ai-data-center-texas-2025-10-15/?utm_source=openai))
Energy Consumption and Environmental Concerns
The energy demands of these data centers are immense. The Electric Power Research Institute projected that by 2030, data centers in the U.S. could consume up to 9% of the nation’s total electricity, more than doubling their current usage. This surge is driven by investments in technology and the expansion of computing hubs. Large data centers require significant power, comparable to that needed for 750,000 homes. This rise in electricity demand could strain the grid, leading to higher power bills and potential outages. The institute highlighted the rapid growth of the data center business, notably post-2022 with OpenAI’s ChatGPT, stressing the need for improved energy efficiency and grid investments. In 2023, about 80% of the U.S. data center load was concentrated in 15 states, primarily Virginia and Texas. ([reuters.com](https://www.reuters.com/business/energy/data-centers-could-use-9-us-electricity-by-2030-research-institute-says-2024-05-29/?utm_source=openai))
To meet these energy needs, some data centers are turning to on-site natural gas power plants. For instance, the Environmental Integrity Project reported that as of April 2025, there were 130 proposed gas power plant projects in Texas, which could cumulatively add over 58 gigawatts of new generating capacity to the Texas grid and emit an estimated 115 million metric tons of greenhouse gases each year. This would be as much climate-warming pollution as 26.8 million cars and trucks driven for a year, or 30 coal-fired power plants. In total, these projects could increase Texas’ greenhouse gas emissions by 13 percent over 2021 levels. ([dallasobserver.com](https://www.dallasobserver.com/news/texas-ai-data-centers-could-drive-a-new-wave-of-air-pollution-22488449?utm_source=openai))
Water Usage and Community Impact
Beyond energy consumption, these facilities also have significant water requirements, primarily for cooling purposes. In 2023 and 2024, data centers in Central Texas used 463 million gallons of water, enough for tens of thousands of homes. This substantial water usage is particularly concerning given the state’s frequent drought conditions. Residents have faced severe drought and water restrictions while AI data centers consume millions of gallons unchecked. Microsoft’s Stargate campus in Abilene used 463 million gallons in two years, with projections hitting 400 billion by 2030. AI data centers lose most cooling water to evaporation, unlike recyclable residential use, worsening Texas’s water crisis. Microsoft pledges to be “water positive” by 2030, but critics say efforts don’t help communities hit hardest by shortages. Texas lacks regulations for data center water use, leaving residents to conserve while corporations operate without limits. ([environ.news](https://environ.news/2025-08-02-texas-ai-data-centers-water-drought-limits.html?utm_source=openai))
Community Concerns and Regulatory Challenges
The rapid development of these data centers has raised concerns among local communities. Residents near these facilities have reported issues such as increased noise, traffic, and environmental degradation. For example, in Memphis, Tennessee, Elon Musk’s AI company, xAI, plans to unveil a powerful AI model, Grok 3, trained largely at a new Memphis data center, which was built in 19 days. However, Memphis residents and city council members, surprised by the project, voiced concerns about its environmental and community impact. The data center is expected to consume massive amounts of electricity and water, potentially worsening local air and water pollution issues. Already, it operates 18 unpermitted gas turbines with high nitrogen oxide emissions. Although local leaders anticipate job creation and infrastructure benefits, others fear exacerbating Memphis’s historically high pollution levels and strained utilities. Environmentalists also worry about the data center’s substantial daily water withdrawal from the aging, fragile local water system. Residents recall previous unfulfilled corporate promises and remain skeptical of xAI’s commitment to genuine community benefits. ([time.com](https://time.com/7021709/elon-musk-xai-grok-memphis/?utm_source=openai))
Future Outlook and Mitigation Strategies
As the demand for AI and data processing continues to grow, the expansion of data centers is likely to persist. To mitigate the environmental impact, companies are exploring various strategies. These include investing in renewable energy sources, implementing advanced cooling technologies to reduce water usage, and designing more energy-efficient data centers. For instance, the University of Texas at Arlington is leading efforts to solve AI data centers’ energy crisis. Dereje Agonafer’s team is working to greatly reduce energy and water use as new AI data centers rapidly rise in Texas. As demand for generative artificial intelligence chatbots like ChatGPT rapidly grows, so does the need for water and energy to cool and power the massive data centers that support them. Existing facilities routinely exceed hundreds of megawatts, with multi-gigawatt campuses under development. These large-scale data centers are being built swiftly across the U.S., including several large-scale facilities in North Texas. In 2024, the Electric Power Research Institute estimated that U.S. data centers could consume up to 9% of the nation’s total electricity by 2030, driven largely by the growth of AI and digital infrastructure. In Texas, data center electricity use could more than double, rising from 4.6% in 2023 to nearly 11% by 2030. ([uta.edu](https://www.uta.edu/news/news-releases/2025/06/26/uta-leads-charge-to-solve-ai-data-centers-energy-crisis?utm_source=openai))
In conclusion, while AI data centers are pivotal for technological advancement, their environmental and community impacts cannot be overlooked. Balancing the growth of digital infrastructure with sustainable practices and community engagement is essential to ensure a harmonious coexistence between technological progress and environmental stewardship.
