Artificial intelligence and the data centers that power it have rapidly become one of the defining policy debates in Texas and America going into the midterm elections.
Earlier this month, Texas Gov. Greg Abbott (R-TX) called for prohibiting AI data centers in rural neighborhoods, reflecting just how quickly the issue has moved from industry circles to the center of public debate.
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As the conversation grows louder, Americans are increasingly being presented with a choice between embracing the economic promise of artificial intelligence and protecting the land, water, and communities that make our society strong. That conversation has also been shaped by broader public concerns about artificial intelligence itself, from its impact on jobs to growing unease over online privacy, free speech, and the influence of so-called “Big Tech.”
That framing may generate headlines, but it presents a false choice. America can lead in artificial intelligence, strengthen its economy, protect its natural resources, and maintain grid reliability at the same time. The key is approaching the issue with facts rather than fear.
As someone who has spent decades building internet infrastructure, I understand these issues firsthand. I helped launch one of the nation’s earliest internet service providers and later co-founded and eventually sold Data Foundry, which built and operated multi-acre data centers. I have also spent years fighting for online privacy, free speech, and protections against government overreach at both the state and federal levels.
That is why I believe much of today’s debate is missing a critical point: data centers are not some optional luxury. They have operated in America for decades. Artificial intelligence has simply made the public more aware of infrastructure that has long existed behind the scenes. They are foundational infrastructure, every bit as essential to the modern economy as roads, electricity, and broadband.
Every email, bank transaction, cloud backup, streaming service, social media post, and AI chatbot depends on digital infrastructure. Data centers are essential infrastructure for modern civilization.
Recognizing their importance does not mean ignoring legitimate concerns. Americans deserve honest answers about water use, electricity demand, and community impacts. But too often, the public debate is driven by alarming headlines rather than meaningful context.
For perspective, all U.S. data centers combined used an estimated 200 to 580 million gallons of freshwater per day in 2023. California almond orchards alone consume roughly 4 to 5 billion gallons per day. When viewed alongside other major water users, data center consumption is far less alarming than many headlines suggest.
The same is true for electricity consumption. Headlines often portray data centers as massive drains on the grid, but that description misses an important part of the story.
Many modern data centers can rapidly reduce their electricity demand during periods of grid stress, effectively acting as a virtual battery for the power system. This capability comes as a byproduct of private investment. When called upon, data centers can curtail demand almost instantly, freeing up electricity for homes and businesses during critical periods.
Just as importantly, many of the generation projects being proposed today would not be built absent growing demand from data centers and artificial intelligence. The investment flowing into new power infrastructure is helping accelerate construction that will ultimately strengthen the grid and lower prices for everyone.
In some cases, the very inefficiencies critics complain about were created by government itself.
When I owned three data centers in Austin, I sought permission to reduce freshwater consumption through gray water recycling. The city would not allow it. I also explored on-site power generation tied directly to existing natural gas infrastructure, and was told no.
Before rushing to impose new restrictions, policymakers should first remove barriers that prevent companies from using water and electricity more efficiently. Government should be encouraging innovation, not blocking it.
Technology is evolving rapidly. Closed-loop cooling systems, water recycling technologies, advanced chip designs, and more efficient infrastructure are already reducing resource consumption.
And we should not be naive about the geopolitical stakes.
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China would love nothing more than for America to overregulate itself and fall behind in artificial intelligence and digital infrastructure. Foreign adversaries understand something many Americans still do not: whoever leads the next technological frontier will shape the global balance of power for decades to come.
America led the internet revolution because we embraced innovation while solving challenges along the way. Artificial intelligence and the infrastructure that supports it represent the next chapter of that story. If fear drives this debate, we risk surrendering technological leadership to our competitors. America should lead this frontier too.
Ron Yokubaitis is the co-founder and co-CEO of Golden Frog and Data Foundry. He and his wife, Carolyn, also co-founded Texas.net, one of the first 50 internet service providers in the U.S.
