Data centers in Texas fund community projects in rural areas that oppose them

Data center companies in rural Texas are donating to and investing money in community projects ranging from improving water infrastructure to hosting dinners commemorating first responders reports Jayme Lozano Carver for The Texas Tribune.

By reviewing public records and news releases, the Tribune estimates data centers have invested $343 million across the state this year — much of it going to communities that oppose data centers. Since not all donations are public, the estimate is likely an undercount.

In Turkey, Texas, QTS Data Centers provided $250 million for upgrades to the city’s water system. Rowan Digital Infrastructure gave Temple, Texas, $38 million after a devastating tornado. The company gave $25 million to the South Temple Water Infrastructure Capital Program, $10 million for water system infrastructure, and proposed $3 million to rebuild Sammons Community Center, which was destroyed by a tornado.

 

Other multi-million dollar projects are at Texas State Technical College and in small towns like Haskell, Vernon, Bell County and Ellis County. Because of the state's tax exemption program for data centers, Texas will forgo at least $3 billion in sales tax revenue over the next two years.

 
"There is no question that these data centers are an opportunity for rural communities that are living in the margin,” said Suzanne Bellsnyder, an editor and publisher of two Texas Panhandle newspapers and a Substack focused on rural issues. “Most infrastructure resources are paid with tax dollars, and there’s not a ton there.”