Civic Insights with David Billings
On any given evening in Rockwall County, a family sends a text, streams a movie, or makes a simple phone call. It feels routine. But behind each of those everyday moments is something most people never see: data centers.
Data centers are no longer distant pieces of infrastructure that most people rarely think about. They are now part of everyday life.
At this point, it is not an exaggeration to say data centers are becoming as essential to modern life as roads, water, and electricity.
And increasingly, they are becoming a local issue.
From Invisible Infrastructure to Local Reality
Modern data centers began taking shape in the 1970s. That era marked the shift from massive mainframe computers to smaller, distributed servers. It also introduced innovations like networked computing and raised-floor cooling systems, standards still used today.
During those early years, banks, telecommunications companies, and large businesses operated their own private data centers. Everything was local, tightly controlled, and expensive to maintain.
Then came the internet and, later, cloud computing.
At its core, the internet is not a single network. It is a collection of interconnected private IP networks. Data centers became the backbone that allowed those networks to communicate, store information, and deliver online services in real time.
That shift led to the rise of colocation facilities. These are shared data centers where businesses and internet providers lease space, power, and connectivity. Instead of building their own facilities, companies could expand faster and at lower cost.
That model helped fuel the rise of companies like Amazon and streaming platforms such as Prime Video and Disney+.
Most of us remember the early days of streaming. The buffering wheel or “spinny ball” seemed to last forever while a movie loaded. That was not just slow internet. It was the early stage of building the online experience we now take for granted.
The AI Era
Now we are entering the next phase: artificial intelligence.
AI requires enormous computing power. It also requires data centers built closer to users to deliver faster performance and lower delays.
That demand is rapidly increasing the need for both electricity and water. As a result, data centers are moving from the background into the center of public policy discussions.
AI-aligned super PACs reportedly spent about $4.2 million during this Texas primary cycle, with all but $150,000 going to Republicans, according to the Tech Oversight Project, a Washington, D.C.-based nonprofit that supports stronger regulation of data centers.
Data Centers, National Security, and Texas Policy
Governor Greg Abbott and industry leaders are increasingly framing data centers as more than economic development projects. They are now viewed as critical infrastructure in the global race to dominate artificial intelligence.
Some policymakers also see them as a potential national security concern, particularly regarding China.
Abbott has promoted Texas as the “epicenter” of artificial intelligence development. In November, he joined Google CEO Sundar Pichai to announce Google’s reported $40 billion investment in Texas through three new data centers in West Texas and the Panhandle.
In April 2026, the Texas House Committee on State Affairs held a major hearing on the rapid expansion of data centers and their impact on the state.
Lawmakers heard a consistent message:
- Demand is growing at an unprecedented rate
- Data centers require enormous amounts of electricity
The hearings also highlighted growing local concerns:
- Water use for data center cooling
- Land demands and compatibility with local planning
- Increasing resistance to large-scale projects
At the same time, critics and policymakers raised important economic questions:
- Tax incentives could cost the state more than $1 billion annually
- The economic benefits may be overstated compared to the number of jobs created
- Are taxpayers helping fund infrastructure that mainly benefits private companies?
The Legislature is trying to balance three competing pressures: economic growth, community impacts, and the rapid expansion of AI infrastructure.
Texas Legislative Response: SB 6 and SB 7
During the 89th Legislative Session, the Texas Legislature took steps to address growing demands on water and power infrastructure tied to future data center development.
Senate Bill 7: Water Infrastructure
Senate Bill 7 expands water infrastructure funding by up to $20 billion over the next 20 years. The goal is to help Texas support population increases, industrial expansion, and large developments like data centers.
Senate Bill 6: Energy Infrastructure
Senate Bill 6 addresses rapidly growing electricity demand, particularly from very large users.
At its core, the message is simple: growth should help pay for growth.
The legislation:
- Targets very large electricity users exceeding 75 megawatts
- Requires companies such as Meta and Google to help fund grid connections
- Helps protect residents and small businesses from absorbing those costs
An Industry Perspective
The technology industry has been clear: capacity must expand rapidly to support the AI-driven economy.
Companies like Google are leading that investment. In Texas alone, Google is expected to invest tens of billions of dollars, estimated at roughly $40 billion.
Supporters argue the economic returns could be substantial. Some estimates suggest every $1 invested could generate as much as $26 in broader economic activity.
The Role of Local Government
This level of development does not happen in a vacuum. Local governments are increasingly relying on Chapter 380 agreements to:
- Match development with infrastructure capacity
- Reduce impacts on surrounding communities
- Share infrastructure costs
- Manage water use
These agreements are becoming one of the main tools local governments use to balance economic development with pressure on public infrastructure.
The Local Government Challenge
Local governments are increasingly stuck in the middle.
- The state creates the legal framework through legislation like SB 6 and SB 7
- Private investment and consumer demand drive expansion
- Local governments manage the real-world impacts on roads, utilities, public safety, and long-term planning
That balancing act is becoming more difficult as the demand for AI infrastructure accelerates.
Final Thought
The message from both industry leaders and policymakers is clear: more data centers are coming.
The real question is not whether communities will participate. The question is whether they will plan for it effectively.
Because in the end, we either plan for the future, or the future plans for us.
🎙️ Continue the Conversation
Listen to my podcast, “As Fate Would Have It.” My co-host Dave Martin, host of The Good Government Show, joins me as we talk with government and local leaders about what’s happening in Fate and across Rockwall County.
New episodes drop monthly. Give it a listen and let me know what topics you’d like us to cover.
About the Author
David Billings, former Mayor of Fate, has served the community for over a decade. A longtime business leader in the telecommunication industry, Navy veteran, and resident of Rockwall County, he brings both professional and civic experience to his writing on government, budgeting, and local economics. He is a graduate of Leadership Rockwall, North Texas Commission Leadership Program, active in several Rockwall County non-profits boards, and the American Legion.
He is passionate about civic involvement in local government, maintaining transparent governance and thoughtful strategic planning to preserve a bright future for the regions.
