In Bells, a small community located approximately an hour north of Dallas, resident Mason McCallister discovered survey markers near his home last year. His curiosity piqued, he suspected they might indicate the development of a new data center that a neighbor had mentioned.
However, information about the project proved elusive. McCallister found no official announcements or mentions in county meeting agendas. Many local officials he approached were unaware of any such plans.
The 34-year-old realtor took it upon himself to investigate further. He combed through property records, knocked on neighbors’ doors for insights, and even involved his wife, also a realtor, who inquired with the surveyors about the land’s prospective buyer. His grandmother even questioned a neighbor at church regarding his land sale.
Eventually, McCallister pieced together information about companies partnering with landowners in the area, including Black Mountain, an energy and digital infrastructure firm based in Fort Worth. He uncovered a permit for a power plant linked to the same address as Black Mountain, suggesting the potential for a self-sufficient power source for the anticipated data center.
In March, after months of searching for clarity, McCallister traveled 100 miles to a town hall meeting in the Fort Worth area. There, he learned that Black Mountain’s CEO, Rhett Bennett, would be addressing a different project. Following the presentation, McCallister confronted Bennett, who confirmed that the company was indeed exploring the establishment of a data center in his vicinity.
“Deep down, I was always hoping that I was wrong,” McCallister reflected after receiving the confirmation.
As data center proposals surge across Texas, local residents, including McCallister, are expressing growing frustration over the lack of transparency regarding these projects that they believe threaten their communities. Many have taken on the role of informal investigators, seeking out information and sharing findings through social media groups, and pressing local officials during public meetings.
“Knowledge is power, right?” McCallister stated, emphasizing the silence surrounding the developments. “If it was truly beneficial for the community, they would be shouting it from the rooftops.”
Local officials are also feeling the impact of this information void. They report being caught off guard by data center proposals and being asked to approve plans without sufficient details. Notably, Hood County faced a lawsuit from a developer after rejecting a concept plan due to inadequate information about water sourcing.
Transparency issues are exacerbated by non-disclosure agreements that prevent local officials from sharing information during negotiations with developers. Further complicating matters, some technology companies utilize shell corporations to obscure their identities in public records.
Residents and county officials frequently find out about proposed data centers only after significant progress has been made, often too late to intervene. For example, a developer building a large data center in Abilene indicated that community outreach typically begins only after securing land and financing.
At least 34 counties in Texas have formally requested the state to enhance information availability regarding data centers, including Grayson County, where McCallister resides. “Nothing in no way, shape, form or fashion has ever been presented to the government of Grayson County,” said County Commissioner Art Arthur, expressing concern over the lack of oversight.
In June, residents voiced their concerns at a Taylor City Council meeting about a data center project they feared would lead to excessive water and power consumption, as well as air and noise pollution. Organizers of the Halt Taylor Data Centers Coalition emphasized the need for greater access to information on water and power usage.
As the state grapples with these challenges, leaders are advocating for stricter regulations during the upcoming legislative session. Governor Greg Abbott has called for a halt on data center approvals until regulators can review the projects more thoroughly.
In a letter dated August 3, Abbott highlighted the need for data centers to disclose information regarding tax incentives, energy consumption, water usage, cooling operations, and community impact efforts before receiving approval.
This scrutiny comes as Texas competes with Virginia to become a leading hub for data centers amidst the burgeoning artificial intelligence industry. Reports indicate that at least 248 data center projects are planned in the state, identified through various industry tracking databases, as Texas lacks a centralized system for monitoring these developments.
Data center companies assert they are striving to improve transparency and share their environmental impacts. For instance, Google annually publishes specific water consumption data for its facilities, while Microsoft highlights its job creation and commitment to renewable energy in Texas.
EdgeConneX, another developer, has also initiated community engagement efforts, including town halls to discuss ongoing projects. Dan Diorio, vice president of state policy at the Data Center Coalition, explained that while they welcome transparency, the competitive nature of the industry often complicates reporting requirements.
Tracy Hester, an environmental law professor at the University of Houston, noted that concerns about transparency are not unique to data centers but have emerged as the industry rapidly expands. He likened the current situation to the fracking boom, where transparency issues prompted industry concessions over time.
Julie Waters, a resident of Crowell, a small town in North Texas, expressed her alarm upon learning of a proposed data center in her area, particularly given the existing water restrictions. She advocates for clarity regarding the potential impacts on water resources and local agriculture.
Data centers are known to consume vast amounts of water for cooling, yet accessing information about their water usage can be challenging. There is currently no standardized reporting system for water consumption in Texas, and residents must navigate various entities to obtain relevant data.
In Crowell, Waters discovered that the local water authority had signed a non-disclosure agreement with a potential developer, hindering transparency. The authority had ultimately denied the developer’s application due to insufficient water availability but emphasized that they were not trying to conceal information.
Diorio defended the use of NDAs, stating that they are common in economic development, especially in initial phases. He argued that such agreements help local officials make informed decisions while protecting proprietary information.
In some cases, agreements have been reached to waive property taxes for projects without public knowledge of the developer’s identity. Following public backlash, Hood County rescinded such a letter of support for a project lacking transparency.
Similarly, the local incentive agreement for Meta’s data center in Fort Worth was approved before the company’s identity was disclosed, as officials cited non-disclosure agreements as a barrier to discussing project details.
Adrian Shelley, director of Public Citizen’s Texas office, commented on how the incentive structure encourages secrecy regarding data center projects, stating that early disclosure often leads to organized local opposition.
Brandon Shelby, an economic development attorney, acknowledged the necessity of confidentiality in negotiations but emphasized the importance of public accountability in the decision-making process.
Responding to growing criticisms, Microsoft announced it would halt the use of non-disclosure agreements to enhance transparency. Nevertheless, some companies continue to shield their identities through shell corporations, complicating efforts to track project details.
County leaders have expressed frustration over the pressure to enter tax agreements to gain leverage for information, with some advocating for legislative solutions to address the transparency issues without relying on incentives.
State agencies also face significant information gaps regarding data centers. The Texas Water Development Board has struggled to receive compliance from data centers regarding water usage reporting, and the Public Utility Commission has similarly encountered low response rates in its voluntary surveys.
Abbott’s recent actions reflect a shift towards increased regulation as the state confronts the rapid growth of data centers. Both lawmakers and residents are calling for more comprehensive data to inform planning efforts in response to the industry’s expansion.
Despite the ongoing challenges, McCallister remains vigilant, regularly reviewing records and tracking environmental permits related to properties near his home. His dedication to uncovering information stems from a desire to protect his family’s legacy and the community’s future.
As he continues his advocacy, McCallister’s efforts have inspired others. Recently, he organized a rally to voice concerns about the unchecked growth of data centers, drawing attention to the need for greater accountability in the industry.
“They control the narrative by keeping everything secret,” McCallister remarked. “I’m determined to change that.”
