Latest / Austin Signal / Competing interests for the Dog’s Head development
Transcript
- 0:08We have been learning a lot about
- 0:09the Dog's Head development over the
- 0:11past months, including the
- 0:13future plans the developer would
- 0:14like to see there, how little
- 0:16neighbors knew about the idea as it
- 0:17picked up steam, and the
- 0:19competing interests curious about
- 0:21that project.
- 0:22We're going to tell you about the
- 0:22ways those sides sought support from
- 0:24the city.
- 0:25And we're also trying to learn more
- 0:26about what data centers are and
- 0:28understand their impacts on our
- 0:30communities and its resources.
- 0:32What are the necessary supplies to
- 0:34power these centers?
- 0:35Well, a whole lot of water and
- 0:36plenty of electricity.
- 0:38We'll tell you just how much and how
- 0:39that impacts all of us.
- 0:41That's on today's show.
- 0:42The Austin Signal is a production
- 0:44of KUT News, hosted by
- 0:46Jerry Quijano.
- 0:47Plus, we've got a look ahead at a
- 0:49few art happenings this week here in
- 0:51our area.
- 0:52Plenty more show coming up after
- 0:54this.
- 0:55This is Austin Signal.
- 1:07Howdy out there, this is Austin
- 1:09Signal. I'm your host Jerry
- 1:10Kehannel. Thank you for being with
- 1:11us. It's Wednesday, August 5th.
- 1:14The Dog's Head development in
- 1:16Southeast Austin is moving forward
- 1:17after city council last month
- 1:19approved creation of a tax increment
- 1:21reinvestment zone, or TERS, for
- 1:23the project.
- 1:24But the multi-use development has
- 1:26been controversial from the start,
- 1:27with some neighbors saying there
- 1:28wasn't enough community engagement
- 1:30ahead of key votes.
- 1:31Going on in the background were
- 1:33competing political campaigns trying
- 1:34to sway city council on the project.
- 1:37Here to tell us more is Andrea Ball.
- 1:39She covers growth development for
- 1:40our reporting partners over at
- 1:42Austin Current.
- 1:43Andrea, good to see you.
- 1:44Great to be here, Jerry.
- 1:46Okay, so we have been talking a lot
- 1:47about dog's head development,
- 1:49and a lot has been happening in a
- 1:50short amount of time. So can you
- 1:51remind us why is this development,
- 1:53why has it been so controversial to
- 1:55begin with?
- 1:56Well, it's a really big piece of
- 1:58property. It's four and a half
- 1:59square miles, 2,600 acres,
- 2:02and it's very close.
- 2:03It's Southeast Austin, and it is
- 2:05very close to the Colorado River.
- 2:07And I think one of the reasons it
- 2:09became so controversial is because
- 2:10although it had been in the works
- 2:11for quite a while, it popped up on
- 2:13the agenda in May,
- 2:15a consent agenda, actually,
- 2:17and they changed that.
- 2:19But the point was that they just
- 2:21kind of showed up. There had been no
- 2:23real community input.
- 2:24There had not been a lot of
- 2:24conversation.
- 2:26And people were concerned
- 2:28that a lot of issues had not been
- 2:30explored.
- 2:31Okay so your recent reporting was
- 2:32taking a look at two competing
- 2:33groups trying to influence city
- 2:35council. Tell us a little bit more
- 2:36about them, who are they and what
- 2:38are their goals.
- 2:39So you can say one side
- 2:41are the developers who envision
- 2:43a city in a city.
- 2:44This is a large piece of property,
- 2:46as I've said, and they want business
- 2:48and industry and
- 2:50shops and homes
- 2:52and that kind of stuff.
- 2:53And they want to take what was a
- 2:55mining site, fill in the big pits
- 2:57that are left there
- 2:59and basically turn it into this
- 3:01community.
- 3:02They also talk about creating
- 3:04more access to the Colorado River.
- 3:06This other group is
- 3:08Neighbors that's not a hugely
- 3:10populated area, but there
- 3:12are neighbors.
- 3:12There are environmentalists There
- 3:14are community members who
- 3:16are concerned about more
- 3:18development happening on the east
- 3:20side of austin without
- 3:22talking to the community
- 3:24members So they
- 3:26have not said Mostly
- 3:29kill this project forget it never
- 3:31develop that area.
- 3:32What they have said is stop
- 3:34slow down do the
- 3:36environmental studies, do the
- 3:37studies and talk to us
- 3:39about it.
- 3:40So how did these campaigns end up
- 3:42approaching city council?
- 3:44How did they try to sway them?
- 3:45It's really fascinating.
- 3:48So the Endeavor folks took
- 3:50a pretty modern approach, which is
- 3:52to use something,
- 3:54to create an ad that sort of
- 3:57follows where your demographic goes.
- 3:58You don't take a big ad out in
- 4:00like the New York Times or whatever.
- 4:01You take an ad and it goes
- 4:03where the people that you want
- 4:05to influence go.
- 4:06So it did end up, one ad did end
- 4:08up on the New york Times Wordle
- 4:10page for one person.
- 4:12So I don't know that it went to a
- 4:14million people, but it followed that
- 4:15demographic there.
- 4:16So that was to reach out to people
- 4:18where they are.
- 4:19They also were
- 4:21drumming up support from
- 4:23people who are
- 4:25involved in
- 4:27industry and real estate and
- 4:29people who see that
- 4:31area as a good potential.
- 4:34They were not trying to
- 4:36drum up community support
- 4:38from all parts of the city.
- 4:40In an obvious way.
- 4:41They were going with folks that they
- 4:43thought would be supportive
- 4:45the other side
- 4:48it was more grassroots,
- 4:50but like today grassroots like
- 4:53One of the participants, you know
- 4:55was had a big list that sent out
- 4:5616,000 like texts and
- 4:58and emails others, you, know part of
- 5:00that group. They would do block
- 5:02walking and flyers They
- 5:03were really focused super
- 5:05locally
- 5:06So, some of the supporters who
- 5:08signed up to speak in front of
- 5:09council back on July 23rd,
- 5:11they appeared to be from outside of
- 5:13Austin that caught my interest.
- 5:15Tell us more about that.
- 5:16Yeah, so there's no rule
- 5:18at the city that says you have to
- 5:20live in the district,
- 5:22the city, the state.
- 5:25You can sign up your
- 5:27opinion no matter where
- 5:29you are.
- 5:30When I talked to the people from
- 5:33Dog's Head, they said, we were not
- 5:34targeting people from New York to
- 5:36come and if I were going
- 5:37to do an ad in Myrtle,
- 5:39that's not where I would go,
- 5:41like to just get, you know, so.
- 5:43Um What did happen,
- 5:45however, is that, you know, in a
- 5:46network, in a statewide network,
- 5:48people are like, Oh, yeah, I, I'm
- 5:50into I'm interested in that kind
- 5:52of development. I would like to see
- 5:53that kind of thing. I support that.
- 5:55So they would come from San Antonio
- 5:57and Houston, some came from
- 5:58out of state.
- 6:00Some of them may have been
- 6:01employees, some of
- 6:03them were just people who were
- 6:04plugged in.
- 6:06The TURS vote did pass,
- 6:08then there are more council
- 6:09decisions ahead, but this isn't the
- 6:11end of the story.
- 6:12What's next for this project, and
- 6:13are opponents going to continue to
- 6:15fight it?
- 6:16Yeah, no one's going away.
- 6:19That is the most remarkable thing
- 6:20about Austin, isn't it?
- 6:22Like when people really think
- 6:23something, they continue to
- 6:25think it and they continue to fight
- 6:27for it, and that's what I love about
- 6:28Austin.
- 6:30And so yeah, the folks who wanna
- 6:32see changes to the current plan are
- 6:34absolutely going to continue
- 6:36to show up to council meetings where
- 6:38it's being discussed, where
- 6:39there might be a vote, that sort
- 6:41of thing.
- 6:42What I expect to see is Endeavor
- 6:44make more efforts.
- 6:45They have made efforts.
- 6:46They're making more efforts, what
- 6:47they say they will, to
- 6:49reach out to the community, to
- 6:51explain things, ask
- 6:53what people are concerned about,
- 6:55answer questions, that sort of
- 6:56thing.
- 6:57All right, well, when there's more
- 6:59reporting on what's happening on
- 7:00Dog's Head development, we will
- 7:01bring you that right here on Austin
- 7:03Signal. We have been speaking with
- 7:04Andrea Ball, Growth Development
- 7:06Reporter for Austin Current.
- 7:08They are KUT's reporting partner
- 7:10as well as Austin Signal's reporting
- 7:11partner. Andrea, always great to
- 7:13talk with you.
- 7:13Always a pleasure to be here.
- 7:18All right, we are just about halfway
- 7:20through this week, and I can't be
- 7:22the only one thinking about the
- 7:23weekend already.
- 7:25So for today's Where the
- 7:27Art Is segment, we are
- 7:28joined by Art Beat editor Stephanie
- 7:30Federico to get us thinking about
- 7:33what is ahead this weekend.
- 7:34Howdy, Steph, good to see you.
- 7:35Good to see you.
- 7:36It's never too early.
- 7:37It really isn't.
- 7:38And you know, there's always
- 7:39something going on in Austin that
- 7:40you really have to start thinking a
- 7:42few days ahead as to what
- 7:43might be shaking out so that I can
- 7:45make this, make that, and maybe
- 7:47screen a three-hour Odyssey
- 7:50movie somewhere in there.
- 7:51So let's give some alternatives to
- 7:53spending three hours inside
- 7:55an Odyssey theater.
- 7:57Tell us a little bit about Midnight.
- 7:58What is that?
- 8:00So this is a play that's
- 8:02put on by Summer Break Theater, and
- 8:03this is group of teachers
- 8:05and educators who are on their
- 8:07summer break.
- 8:08So it's apparently this old school
- 8:10screwball comedy that takes place
- 8:12in the 1950s in the suites
- 8:14at the Ritz Carlton in New
- 8:16York, and it's this desperate
- 8:18director's meeting and it kind of
- 8:20descends into chaos.
- 8:22It's making its Texas premiere,
- 8:24and that's happening starting
- 8:25Thursday through the 15th
- 8:27at Stage Austin.
- 8:29Okay, that's really interesting.
- 8:30I've never heard of that, an
- 8:31educator. You know, you see those
- 8:33games where teachers will play
- 8:35basketball or football in high
- 8:37school, but I've seen a fool on
- 8:39play. That sounds pretty intriguing.
- 8:41This next suggestion got a lot of
- 8:43people in the newsroom talking just
- 8:44about 30 minutes ago, and it was
- 8:46jazz. So tell us, what is this jazz
- 8:48that you speak of?
- 8:49Yeah, someone was saying that, you
- 8:51know, you reach a certain age and
- 8:52you're suddenly a big jazz fan.
- 8:54I didn't hear that part.
- 8:56Yeah, so I have
- 8:58never been to Parker Jazz Club.
- 8:59It's downtown on 4th Street.
- 9:02Chris Kamura, quartet is playing
- 9:04and his band is going to be
- 9:05doing American songbook classics
- 9:08like Nat King Cole, Chet Baker,
- 9:10Frank Sinatra, Mel Torme, all that.
- 9:12I've not been to this space as I
- 9:14said, but you know, looking online,
- 9:16it looks like this really nice
- 9:17little intimate venue that is
- 9:19like the perfect setting to sit and
- 9:21listen to jazz, so.
- 9:22I would be interested in checking
- 9:24that out. They also do a live stream
- 9:26if you wanna just listen in your own
- 9:28home. So you can tune in that way.
- 9:30Okay, well as we're seeing with The
- 9:32Odyssey, I keep mentioning The
- 9:32Odyssey but the classics never go
- 9:34out of style and it sounds like you
- 9:35can get a little taste of that this
- 9:37Saturday at, again,
- 9:39Parker Jazz Club.
- 9:40Okay, also Saturday,
- 9:42some second Saturday open studios,
- 9:44where is that happening?
- 9:45Yeah, that's over at Art Hub ATX.
- 9:47That is this giant space that opened
- 9:49just a few years ago off I-35
- 9:51near the Woodward Street
- 9:53exit. It's this old
- 9:55insurance building, and you can tell
- 9:57it's like very 70s, like wood
- 9:59paneling and the carpet and
- 10:00everything.
- 10:01They have more than 100 artist
- 10:02studios and galleries there, lots of
- 10:04cool stuff there, including the
- 10:06Good Dads studio, which I recommend.
- 10:08Lots of contemporary art,
- 10:09photography, printmaking.
- 10:11There's going to be some tours, some
- 10:13vendor markets, some food trucks.
- 10:14There's like a drop in ceramics
- 10:16class. I think, uh, this
- 10:18happens every second Saturday of the
- 10:20month from one to six.
- 10:21Okay, you can drop into the ceramics
- 10:23class, but please don't drop your
- 10:24ceramics at the drop-in ceramics.
- 10:27Okay, we have a little bit of time
- 10:28here, and I don't know if you caught
- 10:30it because I was trying to be real
- 10:31subtle with my foreshadowing, but I
- 10:33wanted to ask you about the Odyssey.
- 10:35Have you had a chance to catch it
- 10:37yet?
- 10:37I have not seen it yet.
- 10:38Okay, well, I
- 10:40was trying to hold out for a ticket
- 10:42at the Bullock, but they were
- 10:43extremely sold out.
- 10:45But you've already come to us once
- 10:46on Signal to talk about tickets
- 10:48being restocked.
- 10:49Is there a chance that's happening
- 10:50here?
- 10:50I just read that they
- 10:52did add some new show times,
- 10:54like the Bullock, like you said,
- 10:55I've never been to an IMAX movie at
- 10:57the Bullok, but apparently this is
- 10:59the movie that you go to the IMAx
- 11:01for.
- 11:02So I think that's really cool.
- 11:03I guess the demand was super high
- 11:05and people were waiting hours and
- 11:07all that stuff.
- 11:07And now the students are going to be
- 11:09coming back to the university soon
- 11:10and I'm sure more people would be we
- 11:12need to 24-hour screenings here at
- 11:13the Bullock. I don't know who's
- 11:14gonna work them, but we need those.
- 11:16All right. That is Stephanie
- 11:17Federico She is the editor of
- 11:19our art beats Stephanie great to
- 11:21chat with you
- 11:22Great to chat with you, Jerry.
- 11:23Alright, this is Austin Signal.
- 11:25We'll be back after a break.
- 11:29This is Austin Signal, welcome back.
- 11:32This week, Texas Governor Greg
- 11:33Abbott ordered a pause on new data
- 11:35centers until more is known about
- 11:37how much power and water each of
- 11:39those projects need.
- 11:41Democrats in the Texas Senate
- 11:42meanwhile are calling for a complete
- 11:44moratorium on new data centers,
- 11:47until the legislature meets to pass
- 11:48new rules for them.
- 11:50Water and electricity are two of
- 11:52the major factors in the opposition
- 11:54to data centers but How much
- 11:56of these things do they actually
- 11:58use, and what does that mean for the
- 11:59rest of us?
- 12:00In the second part of our series,
- 12:02The Data Center Next Door, KUT's
- 12:05Kaylee Hunt, Katie McAfee and Lee
- 12:07Walden tried to corral some
- 12:08answers.
- 12:12Tori Martin's horses run straight
- 12:14for her when they spot her at the
- 12:16top of the hill.
- 12:18Stepping out of the truck, Martin is
- 12:20immediately surrounded.
- 12:21Whoop you, did you knock the free
- 12:22branch down?
- 12:24Each horse is vying for attention,
- 12:26winning and nudging her with their
- 12:27noses.
- 12:32Martin has been raising animals her
- 12:34entire life.
- 12:35Taught me a lot of patience.
- 12:37Things don't always go your way.
- 12:39You just try again.
- 12:41You ask more politely maybe.
- 12:44Asking firmer doesn't usually get
- 12:45the job done.
- 12:47These days.
- 12:47Martin is learning how to ask for
- 12:49things firmer and she's becoming
- 12:51increasingly impatient with
- 12:53some humans at least
- 12:55particularly the humans who want to
- 12:57build a data center next to her
- 12:58ranch just outside San Marcos.
- 13:00We'd be backing up to our fence line
- 13:03for about 40 acres this direction.
- 13:07And it would be an AI data center.
- 13:10A developer.
- 13:10Proposed the data center about a
- 13:12year ago.
- 13:13Since then, Martin's been working
- 13:14alongside activists in the area to
- 13:16try to fight it.
- 13:17Land is the only thing they're not
- 13:18making more of,
- 13:20and I would, you
- 13:22know, hate to not be able to
- 13:24raise kids in the same environment I
- 13:25was able to be raised in.
- 13:28There's lots of development
- 13:29happening around Martin's ranch,
- 13:31and it's been putting stress on
- 13:33nearby infrastructure.
- 13:34Her neighborhood already deals with
- 13:36brown-outs and water outages.
- 13:37Martin blames it on all the new
- 13:39building in the area.
- 13:40If a data center moves in, she's
- 13:41worried about the county keeping up.
- 13:43She's not the only one.
- 13:45I call this regular meeting of the
- 13:46San Marcos City Council to order.
- 13:48Today is Tuesday, February
- 13:5017th. It's February of this year.
- 13:52Hundreds of people spill onto the
- 13:54lawn outside of San Marcas City
- 13:55Hall.
- 13:56Mr. Rodriguez here.
- 13:57Mr. Garza.
- 14:00The council.
- 14:00Chambers themselves are packed.
- 14:03So is the overflow room and the
- 14:05lobby.
- 14:05The council is set to discuss the
- 14:07development behind...
- 14:08Martin's ranch.
- 14:09The clipboard where people sign up
- 14:10for public comment has a thick stack
- 14:12of pages with line after
- 14:14line of names.
- 14:15On it are business owners,
- 14:17students, parents, just regular
- 14:19people, Democrats and
- 14:21Republicans.
- 14:22Most have come to oppose the data
- 14:24center. Their methods of persuasion
- 14:26vary.
- 14:27You say no to this
- 14:29and there is a grand celebration.
- 14:32Everyone in the yard is happy.
- 14:34People are gonna go jump in the
- 14:35river. They're gonna go out.
- 14:36People are going to get laid tonight
- 14:37if you say no.
- 14:39Just to say, hundreds of speakers at
- 14:40the meeting are passionate.
- 14:42They're worried about how a data
- 14:43center will change the culture of
- 14:45the town.
- 14:45We are sacrificing our identity
- 14:47as a city.
- 14:49They're worried about their energy
- 14:50bills. When the electricity bills go
- 14:52up, that will be on all
- 14:54of you that have voted yes to this.
- 14:56But they're mostly worried about
- 14:58water. Data centers consume vast
- 14:59quantities of water.
- 15:00I am incredibly concerned about
- 15:02future water security.
- 15:04I want y'all, put y'alls money where
- 15:05your mouth is because you're
- 15:06literally taking water out of our
- 15:08mouth.
- 15:08In my culture, we say agua
- 15:10es vida, meaning water
- 15:12is life.
- 15:13Water. Water.
- 15:14Water. Water. Water.
- 15:15But how much water do data centers
- 15:16actually use?
- 15:18Does anyone really know?
- 15:22We called Margaret Cook to find out.
- 15:24She researches water supply at the
- 15:26Houston Advanced Research Center.
- 15:28I've been working on water energy
- 15:29nexus issues for...
- 15:31About 15 years.
- 15:32She says there is an answer to
- 15:34how much water data centers use,
- 15:37just not a satisfying one.
- 15:40The clear answer to the general
- 15:41question is it depends.
- 15:42It depends on two things,
- 15:45how big a data center is and
- 15:46how.
- 15:47It's cooled.
- 15:48Remember the servers in a data
- 15:50center run constantly and generate
- 15:51a ton of heat and that
- 15:53heat needs to be dissipated somehow
- 15:55or the computers can burn out in
- 15:57minutes.
- 15:58Most data centers either use air
- 15:59or water to cool its servers.
- 16:01Cook says, air works fine for data
- 16:03centers built in cold climates,
- 16:06but it's hot in Texas.
- 16:07Water is much more
- 16:09efficient at cooling than air is.
- 16:12That's why on a hot day,
- 16:14you'd probably rather jump in a pool
- 16:15than stand under a tree.
- 16:16Many data centers rely on what's
- 16:19called evaporative cooling.
- 16:20That's where water absorbs heat from
- 16:22the servers, causing it to eva-
- 16:24Cook says evaporative cooling is
- 16:26an energy-efficient way of cooling a
- 16:28data center, but it uses
- 16:30a ton of water.
- 16:32Then there's a closed loop system.
- 16:34In a closed-loop, a coolant gets
- 16:36looped through a data center,
- 16:37pulling heat off of servers.
- 16:39As the fluid moves through the
- 16:40system, it gets hotter and hotter,
- 16:42and something else needs to cool it
- 16:44back down for the closed loop to
- 16:45work. Cook says to think about your
- 16:47body as an example.
- 16:48You can't cool down unless something
- 16:50takes heat off of you.
- 16:52So you're gonna sweat and the
- 16:54wind's gonna or the air is gonna
- 16:55pull the sweat off of you and that's
- 16:57how your body cools.
- 16:59And then your skin and your blood
- 17:00cool down and that to close loop
- 17:02system.
- 17:03Cook says more and more data centers
- 17:04are using this method, but closed
- 17:06loop systems have a catch.
- 17:08Just like how your body cools
- 17:10itself, some data centers use
- 17:11an air chiller to cool down that
- 17:13fluid. In that case, a data center's
- 17:15overall water usage would be pretty
- 17:17small. They only need water for
- 17:19things like landscaping and flushing
- 17:20toilets.
- 17:21But some data center use water
- 17:23chillers to cool that fluid,
- 17:25Cook says, in that case a closed
- 17:27loop system can...
- 17:28Still be very water intensive.
- 17:31And our estimates on using
- 17:33a water chiller for a hyperscale
- 17:35data center do show
- 17:37that water use could get to
- 17:39half a billion gallons.
- 17:41Cook says your average data center
- 17:43likely uses about 60 million
- 17:45gallons of water a year,
- 17:47around what an 18-hole golf course
- 17:49uses.
- 17:50But the new ones, the hyperscalers
- 17:51that Cook's talking about that are
- 17:53being built to do.
- 17:54In a worst case scenario, those can
- 17:56drink up more than a billion gallons
- 17:58of water in a year.
- 18:00That would have to be a really
- 18:01water-intensive cooling strategy.
- 18:04And that's not
- 18:06something that's usually chosen in
- 18:07Texas.
- 18:08Even if it was, Cook wouldn't know.
- 18:11The truth is, the state doesn't even
- 18:12know.
- 18:13And they've tried asking twice.
- 18:15Earlier this year, the Public
- 18:17Utility Commission sent out a survey
- 18:19asking for details about each
- 18:21data center's water use.
- 18:23Texas House Committee hearing,
- 18:24State Rep. Mary Gonzalez asked a
- 18:26data center industry representative
- 18:28How many of your member entities
- 18:30filled out the survey sent
- 18:32out by the state?
- 18:36Less than a third of
- 18:38the state's 341 data centers
- 18:40responded.
- 18:42Survey, the state's Water
- 18:43Development Board asked data centers
- 18:44how much they're using.
- 18:45Only 17% of them responded,
- 18:48despite it being required by law.
- 18:49Just so I understand, so the
- 18:51response rate that you speak of, is
- 18:53that the same data you're collecting
- 18:55for state water planning?
- 18:56But that's Representative Brad
- 18:58Buckley, a Republican from Bell
- 18:59County.
- 19:00He's talking to Temple McKinnon.
- 19:02She oversees the state's water
- 19:04supply planning.
- 19:05Yes, sir.
- 19:06It's the bedrock of our state water
- 19:08plan.
- 19:08Okay, so we're building a state
- 19:09water plan off of the 17 percent
- 19:11response rate.
- 19:13Is that an overstatement?
- 19:15Well, it's...
- 19:16Yeah, so, we have to do a lot of,
- 19:17whatever you call it, extrapolation.
- 19:19Yes, we do.
- 19:20Yeah, I mean, that is a terrible
- 19:22response rate
- 19:23Not knowing how much water is being
- 19:25used now makes it harder to
- 19:27plan for Texas' future water needs.
- 19:29But that's not the only problem.
- 19:31We also don't know how much
- 19:32electricity we'll need to power all
- 19:34of these data centers.
- 19:35And how all of that new demand is
- 19:37going to affect the price of
- 19:38electricity.
- 19:39Electric prices have already
- 19:41gone up 20 to 25 percent
- 19:43since 2020.
- 19:45In Texas alone, they've gone up 29
- 19:48percent.
- 19:48Allison Silverstein is a former
- 19:50state
- 19:51and federal energy regulator.
- 19:52Now, there's lots of things
- 19:54contributing to those higher
- 19:55electricity prices.
- 19:57Aging infrastructure, supply chain
- 19:59issues.
- 20:00And more high demand projects like
- 20:02data centers.
- 20:03They need things like more high
- 20:05voltage transmission lines and more
- 20:07power plants.
- 20:08Those cost increases within
- 20:09ERCOT for
- 20:11transmission are assigned
- 20:14across every retail
- 20:16customer in Texas.
- 20:18So there is no escaping those.
- 20:21Even if there's no data center being
- 20:22built in your neighborhood, your
- 20:24wallet might still feel it.
- 20:26This is something that worries a lot
- 20:27of people.
- 20:28Including, at least lately,
- 20:30state officials.
- 20:31Here's Governor Greg Abbott at a
- 20:33campaign stop last month.
- 20:34Any AI data center even thinking
- 20:36about coming here, they got to bring
- 20:37their own money, bring their own
- 20:39power, reuse their own water,
- 20:41and do it in a way that
- 20:43reduces the cost of electricity
- 20:46for residents across our state.
- 20:48Developers do sometimes plan
- 20:50to bring their own power generation,
- 20:52like putting in a natural gas
- 20:53power plant right next door to their
- 20:55data center.
- 20:56But Allison Silverstein says that
- 20:58doesn't really solve
- 20:59the whole problem.
- 21:00Even if they are building
- 21:02all these energy resources
- 21:04inside the fence of the facility,
- 21:07they are still increasing
- 21:09costs for everybody.
- 21:11Silverstein says that data centers
- 21:12are.
- 21:13Mostly cost indifferent.
- 21:15Meaning when there's steep
- 21:16competition for resources like
- 21:17transformers and gas turbines,
- 21:19things needed for electricity
- 21:21generation, they'll pay a lot more
- 21:23to get to the front of the line.
- 21:24That means the people selling that
- 21:26stuff can charge more for it.
- 21:28So when your local utility needs to
- 21:30buy a new transformer or gas
- 21:32turbine, they also have to dish out
- 21:33more cash.
- 21:34And this goes beyond infrastructure
- 21:36to all parts of energy generation.
- 21:38From natural gas prices to paying
- 21:40plumbers and electricians.
- 21:43ERCOT has gotten requests for almost
- 21:44500 gigawatts of power from
- 21:46the Texas grid.
- 21:48That's enough electricity to power
- 21:49every home in America.
- 21:51All of that is definitely not
- 21:53gonna come online, but the
- 21:55question is, well, how much of it
- 21:57will?
- 21:57Brian Korgel is the director of
- 21:59UT Austin's Energy Institute.
- 22:01He says the majority of those
- 22:03requests come from data centers.
- 22:05Are we really going to double our
- 22:06grid, or will it more be like a
- 22:0820% increase or something over
- 22:10five years?
- 22:11And even that increase is going to
- 22:13be pretty massive.
- 22:14That uncertainty is a huge
- 22:16challenge for ERCOT.
- 22:18They know they need to expand the
- 22:19grid's capacity to account for these
- 22:21new electricity users, but
- 22:23they don't know.
- 22:24By how much.
- 22:25That's part of why this week
- 22:27Governor Abbott ordered a pause on
- 22:29data centers trying to connect to
- 22:30the grid. He wants the state to get
- 22:32a better idea of their water
- 22:33electricity needs.
- 22:35What's gonna happen is that
- 22:37data centers won't get built.
- 22:39So the big question is,
- 22:41you know, can Texas keep up with
- 22:43this promise of economic
- 22:45development?
- 22:47That's the question elected
- 22:48officials across the state are
- 22:49asking themselves.
- 22:52Council are we ready to vote?
- 22:54Okay. It's been hours since the
- 22:56start of the City Council meeting in
- 22:57San Marcos.
- 22:58Yes, and we only need
- 23:00four for that.
- 23:02After hearing testimony from
- 23:04hundreds of community members,
- 23:06the council is ready to take a vote.
- 23:09Okay, the motion passes five to two
- 23:10with two council members saying
- 23:12no with Councilmember
- 23:14Mendoza-Gonzalez.
- 23:15The council votes to block the data
- 23:17center in Tory Martin's backyard.
- 23:19So, hold
- 23:21on a second, hold just one
- 23:23second, let's get clarity.
- 23:25It's 2 a.m.
- 23:26On a Wednesday morning after an
- 23:28eight-hour meeting, and folks won't
- 23:30stop cheering.
- 23:32Which means the zoning item,
- 23:34hold on y'all,
- 23:37hold on.
- 23:40But in the council chambers, some
- 23:42members, even those who voted to
- 23:44block it, see this as a missed
- 23:46opportunity.
- 23:46We have like this golden goose
- 23:48egg here though that could have
- 23:50solved a lot of economic stuff.
- 23:51And I just want, I want to say that
- 23:53out loud because I don't want to be
- 23:54disingenuous.
- 23:55That's Councilmember Josh Poselk.
- 23:57He doesn't think it's a matter of
- 23:59this data center getting built or
- 24:00not built. He thinks it's just a
- 24:02matter of where it'll go and who
- 24:04gets to benefit.
- 24:05I know that there's other data
- 24:07centers being proposed and come
- 24:08across the way and man,
- 24:11it's if we get one that goes right
- 24:12across the street, you know,
- 24:14and we had an opportunity at
- 24:16really a
- 24:18good option for us.
- 24:20I understand all the drawbacks that
- 24:22have been paid out here so I'm not
- 24:23trying to discredit that and thank
- 24:24you for your time for bringing that
- 24:25to our attention.
- 24:27But the economic piece of this
- 24:29is very important.
- 24:31But are data centers really
- 24:33a golden goose egg for a community?
- 24:36How much do they lift up local
- 24:37economy?
- 24:38And how long does that lift last?
- 24:41That's next week.
- 24:43Center next door.
- 24:44I'm Kaylee Hunt, I'm Katie McAfee,
- 24:46and I'm Lee Walden in San Marcos.
- 24:49And you can find the first story
- 24:51in this series over at our website,
- 24:53KUT.org,
- 24:55and listen each Wednesday in August
- 24:57for the rest of the stories in
- 24:59our Data Center Next Door
- 25:01series.
- 25:02Well, that is it for us today here
- 25:04on Austin Signal.
- 25:05There's more about the stories we
- 25:07shared with you in today's podcast
- 25:08show notes and at KUT
- 25:11dot org slash signal.
- 25:13Rene Chavez is our technical
- 25:15director, Alexandra Hart is
- 25:17our producer, and Kristen Cabrera
- 25:19is our managing producer.
- 25:21I'm your host, Jerry Kikano.
- 25:23Austin Signal is back at the same
- 25:24time tomorrow.
- 25:25We'll talk to you then.