While data centers boom in Texas, their plans stay shrouded in secrecy

As data center proposals are popping up across Texas, local residents have grown increasingly frustrated by how difficult it can be to get information about the projects that they say threaten to disrupt their communities.

Armies of concerned neighbors have become their own private detectives in search of signs or confirmation about data center plans in lieu of public disclosures, pestering local officials at meetings or in the grocery store and sharing their findings across Facebook groups with thousands of members.

Homeowners aren’t the only ones operating in the dark. Local officials say they’ve been blindsided by data center projects or asked to consider approval without adequate information. In some cases, nondisclosure agreements prevent local officials who are negotiating deals with companies from sharing what they know. And at times, tech giants use shell companies to shield their identity in public filings.

Oftentimes, locals and even county officials say they don’t learn of the project until it’s too late to try to stop it.

At least 34 Texas counties have formally called on the state to make more information available, according to a tracker kept by Public Citizen, an advocacy organization that has worked with grassroots data center opposition groups.

Meanwhile, state leaders are calling for tougher laws in the coming legislative session to make data centers report more information.

Last week, Gov. Greg Abbott halted approvals for data centers seeking to connect to the state’s grid until state regulators and the grid operator can audit them. He said proposals should be denied unless they provide details on tax breaks, power use and generation, water use and cooling operations, efforts to reduce impacts on local communities and ownership.

Data center companies say they are sharing information and trying to make it easier for the public to see their environmental impact. Dan Diorio, vice president of state policy at the Data Center Coalition, the largest industry trade group, said their main concern when it comes to transparency measures is market rivalry.

“This is a very competitive industry, and the technology moves very fast,” Diorio said. “Your technology, related to cooling, related to electricity use and efficiency, is going to be your competitive edge in the marketplace.”