Only a few weeks after Austin City Council passed a requiring various regulations on , a new 2-gigawatt data center is coming to Lockhart. Tract, a Colorado-based developer, has secured 1,500 acres for a 鈥渕egasite鈥� in Caldwell County, only about six miles away from famous barbecue joints Smitty鈥檚 Market, Kreuz Market and Black鈥檚. It has received enthusiastic support from Gov. Greg Abbott, who said in a statement that it will 鈥渃reate good-paying jobs, bolster the state鈥檚 power grid, and enhance our technology infrastructure.鈥�
However, data centers threaten to have a detrimental effect on Texas鈥� energy infrastructure. Data centers, which operate 24/7 and provide computing power for cloud operations and AI, require cooling units, fans and tons of water to operate. They account for almost 2% of overall global energy demand. Indeed, Texas energy demand is projected to nearly double by 2030, mostly thanks to data centers and cryptomining facilities, which account for about 50% of that expected demand.
As President Trump took office in January, he announced that Texas will be a cornerstone of his $500 billion Stargate initiative, with 10 data centers already under construction and 10 more planned. In a on energy planning in April, Tom Oney, vice president of external affairs for the Lower Colorado River Authority, warned that data centers were a concern, saying: 鈥淭he amount of load that鈥檚 coming to this area is something that we鈥檙e struggling with every day. ERCOT is putting out the alarm bell, and I think it鈥檚 right, because there鈥檚 not enough wires to move that kind of megawatts.鈥�
To address the environmental effects of multiplying data centers in the Austin area, City Council鈥檚 resolution requires audits overseen by humans, and it mandates an environmental study by Austin Energy, Austin Water and the city climate and budget offices over the next decade. It also requires the utilities to report an assessment of the impact to utility rates and strains on resources, and include recommendations on 鈥渨ays to increase clean energy usage and water efficiency, address risks to the power grid, and minimize waste.鈥�
In a , Tract writes that it has secured equipment from Bluebonnet Electric Cooperative for an initial 360 megawatts of energy to begin in 2028. It has also committed to helping fund road improvements on FM 2720 as part of a community investment, according to Judge Hoppy Haden, who said it 鈥渟hows they are invested in the future of Caldwell County.鈥�
Tract鈥檚 CEO Grant van Rooyen said the center will be used for cloud and AI training, but is 鈥渦nique鈥� for these kinds of operations because it 鈥渟its at the intersection of transmission infrastructure, robust natural gas infrastructure and long-haul fiber.鈥�
The Texas Senate Business and Commerce Committee has recommended this session that data centers and other facilities that require large loads be to 鈥渙ffset their impact on the grid by adding on-site power systems or participating in programs to curtail electricity usage during peak demand periods.鈥� To that end, by Sen. Phil King, R-Weatherford 鈥� which has already won Senate approval and is currently in the House Committee on State Affairs 鈥� would put restraints on the state鈥檚 energy market. Its goal is to protect residential customers from bearing the cost burden of another grid catastrophe by putting in place more stringent restrictions on operations with significant demand.
Until SB 6 is passed, those commitments remain up to the discretion of companies like Tract, which states in its press release that the campus will come with 鈥減rovisions for supplemental on-site generation.鈥�
