As Texas experiences a rapid expansion of AI-driven data centers, a growing backlash is emerging over their impact on the state’s power grid, water resources and rural communities.
Lawmakers are now weighing policy responses ahead of the 2027 legislative session with debates already intensifying among state leaders over how to balance economic growth with infrastructure strain, environmental concerns and local control.
Rice University experts are available to provide insight on the energy, water and regulatory challenges tied to this fast-growing sector.
Why this matters now
- Surging power demand: Data centers are driving significant increases in electricity consumption, raising concerns about grid reliability and rising costs for residents.
- Water stress: Large-scale cooling needs are intensifying pressure on already constrained water supplies.
- Rural pushback: Communities across Texas, including Hood County, Waco and West Texas, are resisting projects over noise, land use and environmental concerns.
- Policy clash brewing: State leaders are reviewing tax incentives, regulatory authority and infrastructure impacts.
Available Rice experts
Kenneth B. Medlock III, senior director, Center for Energy Studies, Baker Institute for Public Policy
- Expertise in energy markets, electricity demand, grid reliability, economic impacts, infrastructure planning and policy trade-offs
- Can discuss how large-scale data centers affect electricity markets, pricing and grid stability
Gabriel Collins, the Baker Botts Fellow in Energy and Environmental Regulatory Affairs, Baker Institute for Public Policy
- Expertise in energy and environmental regulation, water use, environmental impacts, industrial development, water-energy nexus, legal frameworks
- Can address regulatory limitations on local control and state policy tensions
Pedro J.J. Alvarez, director, Rice WaTER Institute; the George R. Brown Professor of Civil and Environmental Engineering
- Expertise in water sustainability, environmental impacts, water reuse and treatment
- Can speak to the broader water footprint of industrial growth and strategies for mitigation
Qilin Li, the Karl F. Hasselmann Professor of Civil and Environmental Engineering
- Expertise in water systems, desalination and sustainable water infrastructure
- Can explain water demands of data centers and implications for long-term water sustainability
Eric Willman, executive director, Rice WaTER Institute
- Expertise in water industry partnerships and infrastructure solutions
- Can discuss innovation opportunities to reduce water and energy intensity
To schedule an interview with any of the experts, please contact Alex Becker at alex.becker@rice.edu.