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Phil A's avatar
2dEdited

Doug: Has there been much discussion about whether we should even want to compete with other states like Virginia for data centers? What long-term benefits do data centers bring? What are the externalities?

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Nathan Peavey's avatar

We should be asking more often.

Yeah data centers do bring real benefits: tax revenue, construction jobs, infrastructure upgrades, and long-term economic diversification (especially in rural areas). They’re part of what’s keeping Texas attractive for tech and investment.

But the public benefit depends entirely on how they’re set up. If they’re just massive private users drawing on public infrastructure with no guardrails, Texans could end up footing the bill through grid strain, higher rates, and water stress.

The upside grows when we set clear expectations: Help the grid (demand response, backup power). Run on clean energy. Report transparently on usage. Pay into the infrastructure they rely on

Texas has leverage here but of course, will we use it to benefit the public too?

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