Data Center Presentation — original pdf

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Unsustainable Demands of Data Centers PRESENTATION TO JOINT SUSTAINABILITY COMMITTEE JULY 22, 2026 Bobby Levinski, Senior Staff Attorney Source: National Renewable Energy Laboratory ERCOT Queue. 480 Projects Competing for Power by 2032. Local Impacts to Energy Rates Data Centers Strain on Austin Energy • Austin Energy: “An AI data center could be built in as little as 18 months for the same amount of load as a high density mixed use development covering thousands of acres that may take 20-25 years to fully build out.” • Transmission and Distribution Costs • Ratepayers responsible for covering the costs of building and maintaining substations, transmission lines, and distribution networks • Costs are passed on to ratepayers as delivery charges; esp. if substantial upgrades required. • New power generation? See eg. Peaker Plant Discussion. • Market competition for power purchase agreements. • Stranded costs - what happens if AE ramps up then data center vacates? State Impacts Data Centers Strain on Texas Rates • At state level, Texas will need more transmission infrastructure to serve the new large energy loads.~ $33 billion • Austin Energy will pay a larger share of statewide transmission costs as its total load grows. • Power costs will rise if demand grows faster than transmission, batteries, and generation. • Need for rate class protection to prevent the transfer of these costs onto residential and small businesses Water Demands Data Centers Are NOT in State Water Planning • 2030 Forecast: State already at a 1.6 Trillion Gallon deficit to meet water demands (Source: 2022 TWDB State Water Plan) • False Comparison • Data Centers do NOT replace residential water demands • Water demands are largely based on anticipated population growth • Data Centers represent unmet demands in state / regional plans • Water is a finite resource Direct vs. Indirect Water Demands Water-Energy Nexus. • Basic truth: every unit of electrical energy flowing to a data is coverted to heat; which must be removed • Reducing direct water usage generally increases energy demand • Air cooling = low direct water, more energy (indirect water demand) • Water cooling = high direct water, less energy • Non-water cooling technologies available = higher operational and capital costs • Other than wind and solar, most power generation is water intensive Climate Reality in Texas. Wrong location for Data Center Epicenter? • Non-curtailable uses • Require Constant Cooling • Claim to be “Critical Infrastructure” • Extreme Heat • Competition for Energy at Peak Times Source: WaterDataForTexas.org Land Use Considerations Replacing Rural, Agricultural Lands with Dead Zones • To right: CloudBurst and Palomino Alpha Data Centers near San Marcos • Replace 1700 acres of farmland with over 4 million square feet of data center buildings • Flattened, paved land • Urban Heat Island • Will result in 3 power plants within a 1.5-mile radius • Very few jobs, inactive spaces Land Use Considerations Impacts to Neighboring Properties • Noise (constant low frequency vibration) • Extended periods of construction • Eminent domain may follow for transmissions lines • Air Emissions / Fine Particulate Matter (PM 2.5) • Environmental justice concerns Exploiting Deregulation Data Centers Typically Locating on City Edges • SB 2038 (ETJ Removals) + Decades of Deregulation • Counties lack substantial authority to regulate • Service extension policies become more important • Access to water and wastewater • Some TCEQ Permits required (air + wastewater discharges) Data Center Rebellion. Communities Pushing Back. • San Marcos “ban” • Multiple voter-initiatives • Counties attempt moratoriums • Bipartisan / Ag-Enviro Alliances • Lawsuits • Austin Enviro Commission • April 1, 2026 Rec.