Texas is grappling with water management issues amid increased electricity demand from data centers. At a state House committee meeting, Public Utility Commission Chairman Thomas Gleeson emphasized the importance of understanding water usage in data centers.
Data center developers highlighted advancements in cooling systems, such as closed-loop systems that significantly reduce water consumption. Skybox Datacenters in Dallas, for instance, uses these systems to reduce water use to less than that of five households, according to Haynes Strader, chief development officer.
Although water issues were not on the agenda, they dominated the nearly five-hour meeting. The state Senate Business and Commerce Committee is tasked with recommending ways to balance data center growth with impacts on property rights and water infrastructure before the 2027 legislative session.
The meeting also reviewed the implementation of a new law regulating data centers. The Electric Reliability Council of Texas (ERCOT) is working to prioritize large-load projects for grid interconnection, as mandated by Senate Bill 6. This legislation affects customers using at least 75 megawatts and aims to govern the state’s expanding data center industry, which is set to surpass Virginia in new data center construction.
Water Usage Assurance
Historically, data centers used large volumes of water for cooling. However, many modern facilities, including Skybox’s, use closed-loop systems, requiring initial water only to charge the system. Michael McNamara, CEO of Lancium, noted that their Abilene project consumes far less than the water offered by the city.
In areas like Corpus Christi, drought and industrial demands have nearly depleted water reservoirs. New cooling technologies, such as those used at Skybox since 2016, help reduce water usage. Dan Diorio from the Data Center Coalition stated that modern data centers often use less water than other industries like semiconductors and beverage production.
Google data centers use water cooling only in areas with stable water resources, opting for alternatives in water-scarce locations, according to Liz Schwab of Google.
Interconnection Queue Challenges
Aside from water, data center developers face challenges with grid interconnection under S.B. 6. ERCOT’s CEO, Pablo Vegas, described difficulties with the previous individual project evaluation method. ERCOT received 225 interconnection requests last year, a significant increase from past years.
Developers await clarity on whether their projects will make the first batch for interconnection. Criteria include significant financial commitment and project maturity. Developers like Lancium, which has pledged substantial investment in transmission projects, seek fast-track inclusion.
S.B. 6 shifts transmission costs to large users. The utility commission is revising rules to ensure costs are fairly distributed among large industrial and commercial clients. This involves moving away from calculating charges based solely on peak energy use.
Regulators are also addressing the reliability of data center applications. Stacey Doré of Vistra Corp. emphasized the need for mature, verifiable project applications to ensure the infrastructure supports genuine demand.
Uncertainty in interconnection timelines leaves developers anxious. Will McAdams, an energy consultant, noted the lack of clear power access, complicating planning for investors.
Original Story at insideclimatenews.org