A recent analysis found that Texas has at least 248 planned data centers. Almost half would be in unincorporated areas whose leaders said they have almost no power to stop them, the Texas Tribune reported.
In places like Hood County, the AI boom has become a local battle over water, electricity, noise, and community power. Southwest of Fort Worth, Texas, the county currently has eight data center proposals.
Residents are concerned the projects could demand more water and electricity than Hood County now uses in total.
Local officials can raise concerns, but they often cannot impose the zoning or land use rules available to cities. County commissioners said Texas law leaves them without the authority to set substantial limits on Brazos River basin water withdrawals, noise from generators, or potential effects on nearby property values.
The tension escalated after Hood County enacted a one-year building pause in its unincorporated areas. A data center developer has already sued, arguing the moratorium violates state law.
"We love liberty and love a lack of regulation," said Greg Harrell, chair of the Hood County GOP, at a town hall earlier this year. "Data centers are taking advantage of it… They saw an opportunity."
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Data centers are the physical backbone of the internet and the AI economy. They house servers that power search functions, streaming, and AI tools from companies like Google and OpenAI.
AI can help utilities improve grid efficiency and better integrate renewable energy.
But those same facilities can also consume enormous amounts of electricity and water. Many people have also raised concerns about pollution, security, and higher costs for surrounding communities.
"They were trying to take advantage of country bumpkins," said Hood County Commissioner Dave Eagle in an interview, as reported by the Texas Tribune.
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In May, the state's main grid operator, ERCOT, reported that large projects requesting to connect to the grid totaled 439 gigawatts of power capacity. That is five times larger than the all-time peak demand on the state's grid.
The controversy has also raised the question of whether counties should have more tools to guide development before the next wave of projects arrives.
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