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VideoThe New Data Center Boom in Texas | Podcast
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Demand for data storage and artificial intelligence (AI) infrastructure is reshaping how and where companies build new capacity. In this episode of Weaver: Beyond the Numbers, The Basin Bottom Line, Meredith McKeehan sits down with Ector County Judge Dustin Fawcett to explore what data center growth means for West Texas. The conversation examines what these facilities require, how they connect to energy and water systems and why the Permian Basin is drawing attention.
Key Points:
- Data centers may help support Texas’ power supply by using natural gas and contributing to grid reliability.
- Water produced from oil and gas operations could serve as a viable cooling resource, potentially reducing reliance on fresh water supplies.
- The Permian Basin’s existing infrastructure and workforce make it a strong candidate for future data center growth
Data centers need three core inputs: energy, land and water — and West Texas has all three. The Permian Basin produces large volumes of natural gas, much of which is currently underused or flared. According to Dustin, redirecting that gas into power generation could help support data center demand and broader grid reliability. “If we find a way to harness that natural gas … we can solve that problem of the power for these data centers but also for our grid,” he said.
Water remains the most visible concern, especially in a desert environment. However, the conversation highlights how produced water could change the equation. The Permian Basin brings up significant water volumes daily, and much of it is currently reinjected. Treating and reusing this resource for industrial cooling may offer a new use for what is often disposed, potentially reducing reliance on fresh water supplies. Infrastructure will also play a key role in how quickly projects move forward. The region already has extensive pipeline networks, available land and a workforce experienced in large-scale industrial development, positioning it as a practical location for data center growth.
Beyond infrastructure, the economic implications are significant. Data centers require ongoing technical staffing and generate large construction pipelines, along with substantial property tax value. Dustin noted that a single large facility could rival the taxable value of an entire county but have limited demand for local services. This creates a unique profile for communities: high-value investment with long-term impact.
The push for data centers is closely tied to AI growth, cloud storage and rising energy demand, and shows no signs of slowing. As technology evolves, facilities may become more efficient, but the need for power and infrastructure will remain, raising important questions about where future data center investment will occur and what role the Permian Basin could play in supporting that growth.
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