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FAQ
Frequently asked questions
General
"A data center is a physical room, building or facility that houses IT infrastructure for building, running and delivering applications and services. It also stores and manages the data associated with those applications and services." -IBM, https://www.ibm.com/think/topics/data-centers
There are many datacenters already opperating in Texas. The new technology this coalition is focused on is specific to the "hyperscale" variety of datacenters.
"A hyperscale data center is a massive data center that provides extreme scalability capabilities and is engineered for large-scale workloads with an optimized network infrastructure, streamlined network connectivity and minimized latency." -IBM, https://www.ibm.com/think/topics/hyperscale-data-center
These facilities are largely connected to the expansion of Ai. While each facility is slightly different, they require enormous amounts of water, electricity, and land.
Hyperscale datacenters use an enormous amount of resources - resources that Texas does not have an excess of currently: water, electricity, land, and housing.
We’re looking at Amarillo, "Project Matador" as a standard of expectation for the datacenter’s community impact and have only seen chaos. Housing prices surged due to temporary workers coming in, homelessness increased as residents were priced out, water is being drained, our cotton industry threatened, and all for what appears to be an industry failure thus far.
https://www.texasobserver.org/texas-ai-data-centers-water-usage-regulation/
https://abc7amarillo.com/news/local/amarillo-pit-count-finds-rise-in-first-time-homelessness-as-housing-costs-climb-point-in-time-james-bellar-continuum-of-care-mark-zimmerman-transformation-park
https://www.latimes.com/business/story/2026-05-08/data-center-startup-fermi-promised-nuclear-power-for-ai-but-it-couldnt-sign-single-client
https://dallasexpress.com/state/tech-boom-vs-texas-farmland-why-farmers-are-fighting-ai-data-centers/
Some will argue that the water consumption varies, that there are national security issues at play, or that these companies will ADD power to the grid. These are misleading claims.
To these common arguments:
•the water consumption of industrial users is NOT regulated in our state, and many of these companies are asking for millions of gallons. Check the proposals, check the statistics. Look up Corpus Christi water, look up Kyle Bass case.
•all of these 100’s of complexes are being built by private companies with 2 exceptions for a military base that is still contested in El Paso & maybe in Fort Hood, an ongoing conversation. The private companies are NOT involved in national security, they don’t even know who all the tenants of the centers’ servers will be, but the Chinese parts that supply the build out could become a national security threat.
•they will not add power to the grid, they will only put money into the infrastructure to grow the grid - then, like everyone else, their usage and presence makes the cost go up for everyone else. Supply and demand applies to our power grid. Check Virginia and other east coast states - enormous cost hikes. Then look at what Riot (bitcoin operator) did in Texas in 2023.
https://www.cnbc.com/amp/2023/09/06/texas-paid-bitcoin-miner-riot-31point7-million-to-shut-down-in-august.html
We must go by the history we have, not by empty promises made by people looking to appease us into silence.
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