President Trump's administration has launched an ambitious AI Action Plan that is poised to significantly accelerate data center growth in Central Texas, with potentially far-reaching environmental implications.
The plan, unveiled on July 23, 2025, outlines a comprehensive strategy to maintain American dominance in artificial intelligence through three key pillars: accelerating innovation, building AI infrastructure, and promoting international diplomacy and security. It identifies over 90 federal policy actions that the administration will implement in the coming weeks and months.
Central to the initiative is an executive order titled "Accelerating Federal Permitting of Data Center Infrastructure," which aims to facilitate rapid buildout by easing federal regulatory burdens and utilizing federally owned land for data center development. The order specifically requires federal agencies to identify categorical exclusions under the National Environmental Policy Act and directs the Environmental Protection Agency to expedite permitting by modifying regulations under the Clean Air Act, Clean Water Act, and other environmental laws.
Texas has become a focal point for this expansion, with Microsoft and OpenAI already constructing a massive Stargate Project data center in Abilene, where approximately $100 billion is expected to be spent immediately. When operational, this facility will use enough energy to power 750,000 homes and will be supported by its own natural gas power plant.
However, environmental experts have raised significant concerns about the plan's impact. In towns like Kyle, Pflugerville, and Round Rock, community groups have questioned tax incentives given to facilities that consume more water than they provide in jobs, and the construction of new campuses without clear long-term water plans. According to a white paper by the Houston Advanced Research Center (HARC), data centers in Texas will consume 49 billion gallons of water in 2025, potentially rising to 399 billion gallons by 2030—representing 6.6% of the state's total water use.
The administration's approach has drawn criticism from environmental advocates who argue that the action plan paves the way for increased reliance on fossil fuel infrastructure to support energy-intensive supercomputer warehouses without adequately consulting localities about their concerns. Particularly concerning to environmentalists is the plan's call for a nationwide Clean Water Act permit that would allow data centers to be built without notifying the public about impacts to local water systems, as well as making federal lands available for data centers and establishing new exclusions from environmental review requirements.
As Texas continues to attract AI giants despite resource constraints, the tension between technological advancement and environmental sustainability remains a critical challenge for communities across the state.