CloudBurst's Flagship AI Data Center Breaks Ground in Texas Amid Environmental and Community Backlash
December 5, 2025
The rapid expansion of AI infrastructure is colliding with local environmental and community concerns, as exemplified by a new, large-scale project in Central Texas. The push for computational power is increasingly raising questions about sustainability, resource management, and corporate accountability in regions hosting these energy-intensive facilities.
On November 18, CloudBurst held a groundbreaking ceremony for its flagship AI data center, a facility positioned on the border of Hays and Guadalupe counties, just south of San Marcos. The event was met not with celebration but with significant community opposition, leading the city to formally oppose the construction. The primary concerns center on the project's substantial demands for water and energy, and its potential health impacts, all exacerbated by the area's existing vulnerabilities.
Residents and activists point to the strain on local resources, particularly water. While CloudBurst states the facility will use a closed-loop, recirculating water system, it still requires significant volumes to initially fill and maintain its reserves. This is a critical issue for San Marcos, which is currently under a Stage 3 drought declaration. Compounding the problem is a Texas state law that does not require data centers to publicly disclose their water consumption, shielding operators from scrutiny. On the energy front, CloudBurst has signed a deal with Energy Transfer for natural gas supply capable of generating 1.2 gigawatts of power—enough to supply hundreds of thousands of homes. The combustion of this fuel will release pollutants into the local atmosphere.
Health risks are another major point of contention. Studies and recent examples, such as an xAI data center in Memphis linked to increased asthma and lung disease diagnoses, suggest that pollution and consistent noise from these facilities can negatively impact the health of nearby communities, workers, and wildlife within months of operation.
While data centers are often promoted for creating economic opportunities, critics argue the long-term job creation is typically insufficient to justify the environmental risks. This sentiment is echoed by some experts. Rodion Podorozhny, an associate professor of computer science at Texas State University, acknowledged the societal benefits of AI research but stressed the need for balance. "I have no doubt that of course, researching the AI is very beneficial to the society … so it is unavoidable that people have such centers built … But there must be a balance, right? There must be public supervision. We should not lose our environment," Podorozhny said.
The community opposition appears broad-based. Evan Sikes, a wildlife biology senior and member of the Data Center Action Coalition, noted the unusual alliance against the project: "Every single neighbor in that area [border of Guadalupe and Hays county] has either approached [The Data Center Action Coalition] or approached city council to say, why are you letting this happen? … we’re on very different sides of the political spectrum."
The situation highlights a broader industry challenge: the pursuit of AI infrastructure must not exploit regulatory loopholes and government incentives at the expense of community welfare and environmental health. For the residents of San Marcos and Hays County, the early stages of CloudBurst's development represent a crucial window to demand corporate accountability and sustainable practices before the project advances further.
Source: universitystar
