A data center project in Hood County, Texas, was proposed a year ago with promises of economic benefits but little detail, according to local county commissioner Dave Eagle. While most existing data centers are in urban areas, 67% of planned data centers are now in rural regions, including Hood County. Eagle said companies often approach rural officials as if they are "country bumpkins," making vague promises about jobs and community improvements without specifics. The company behind the proposal, Amazon Web Services, requested up to 90% in property tax rebates for 30 years, according to a pitch obtained by 60 Minutes. Eagle voted against the project in Hood County, but it is moving forward in the neighboring county, where AWS received the tax rebate it sought. Amazon stated it evaluated Hood County as a potential site but ultimately decided not to build there.
Data centers, which house servers and support internet services, have been around for decades, but the need for them has grown with the rise of artificial intelligence. AI data centers are much larger than traditional ones, with new AI data centers potentially reaching 1,000 megawatts—compared to 5 megawatts for older ones—according to Michael Webber, a professor at the University of Texas. Hyperscalers, including Meta, Amazon, Google, and Microsoft, are expected to spend $1.5 trillion building data centers through next year, according to Wall Street estimates. Webber noted that while some believe the demand for data centers will eventually level off, others argue the demand for intelligence will never be sated.
Despite the potential economic benefits, concerns have been raised about the environmental and economic impacts of data centers. Texas mother of five and Marine veteran Jazmin Villegas, who lives near a proposed data center, expressed worries about health risks from water, air, and noise pollution. In Chandler, Arizona, residents worried about water usage for cooling data centers, while in Loudoun County, Virginia, electricity bills have surged due to increased power demand. Webber acknowledged these concerns, stating that people have a right to be concerned because they don't know what will happen.
Texas Gov. Greg Abbott was a strong proponent of tech investment in the state, welcoming a $40 billion investment from Google. However, he has since paused approval of new data centers that would draw from the state's power grid until an audit is completed. Democrat Gina Hinojosa, running against Abbott, has made data centers a key issue in her campaign, calling for a temporary moratorium. Abbott's spokesperson said Texans come first and that data centers will not connect to the Texas grid until the audit is complete and the project meets the governor's requirements.
Opposition to data centers is a rare issue uniting Americans across the political spectrum, with more than 60% of Republicans, Independents, and Democrats agreeing they don't want a data center where they live. In Red Oak, Texas, residents like lifelong conservative Republican Dave Lowe are considering changing their voting behavior due to data center concerns. Lowe and others are part of a group meeting twice a month to push back against data center development in their town, focusing on stopping Compass Datacenters from building 10 two-story data centers on agricultural land the size of Manhattan's Central Park.
Compass Datacenters declined interview requests but stated in a statement that they have worked closely with the community for five years and incorporated feedback into their projects. Amazon also stated it evaluates many potential options to develop sites and works with local leaders to create jobs and generate revenue for public services.
Data Center Expansion Sparks Debate Across Texas and Beyond
AI-rewritten from original reportingHow it works
data-centerstexasenvironmental-impacttax-breaksrural-developmentai



