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Janet Dudding for Texas House District 14 | Bryan-College-Station Leadership | Integrity

Data Centers: Solving the Water Paradox & Defending Local Control

Texas is facing two water crises at the same time: we have too much "produced water" (industrial waste) and not enough water to drink.

For too long, we have viewed these as separate problems. But there is a common-sense solution.

A Forgotten Oil Well Births a 100-Foot Geyser in West Texas - Texas Monthly texasmonthly.com

Data center experts have already confirmed that treated produced water can be used for industrial cooling. If a data center wants to build in our community, the deal should be simple: Stop draining our drinking water and start using the produced water we already have.

If the technology exists to save our aquifers and rivers, then using produced water shouldn't be an "option"—it should be a requirement for entry into our communities.

But the most important part of this equation is Local Control.

I support economic growth and innovation, but I do not support "top-down" mandates from Austin that strip power away from local voters. We need a seat at the table. Our counties, cities, and groundwater districts must have the final say on:

  • Whether a project is allowed to come in.

  • How it manages its water and energy footprint.

  • Where the infrastructure is built.

Innovation is welcome, but not at the cost of our autonomy. We can welcome the digital economy without surrendering our common sense or our water.

Data Centers: No Special Deals, No Local Sellouts

Texas communities should not be forced to sacrifice their water, power, and local control so massive data center corporations can cash in on tax breaks and cheap infrastructure.

I support economic growth. I support technology. But I do not support a system where politically connected corporations get sweetheart treatment while local families, farmers, ranchers, and small businesses are left to deal with the consequences.

That has to stop.

My Position

If a data center company wants to build in Texas, it should meet this basic standard: respect the community, pay its own way, and protect our water.

That means no backroom deals, no blank-check subsidies, and no state preemption that strips power away from local voters and local governments.

That is not conservative. That is not fair. And it is not good government.

But there is a side to the AI boom that isn't about technology—it’s about the money.

Most people see the data centers as just "tech buildouts." But for the insiders in Austin and in D.C., these centers are the physical infrastructure for a new financial "tollbooth." As AI systems begin to process payments and settle transactions automatically, the people who control the digital payment rails—the stablecoins and the crypto-banks—will be the ones collecting the fees and holding the reserves.

This is why my opponent’s record is so concerning.

While he claims to represent the public, he has backed legislation (like the Schwertner bill) that supports the very crypto-banking infrastructure these systems rely on. When you combine that with his position on the board of a local bank, a pattern emerges: a preference for policies that turn public infrastructure into private revenue streams.

This is the same pattern we see on a national scale, where political endorsements are linked to the promotion of stablecoins like USD1 and the creation of private digital reserve holdings. I’ve written extensively about how this "AI money system" works and why it threatens public accountability—[read my full analysis on Substack here].

The public sees the water loss and the power strain. The insiders see a way to control the meter. I believe government should answer to the people of District 14, not to the boardrooms of private banks.

[See the documented votes and financial ties on my Receipts Page →→]

My Policy Agenda

1. Protect Local Control

I will fight to ensure that counties, cities, groundwater districts, and local utilities keep the authority to make decisions about where data centers go and whether local infrastructure can handle them.

I support:

  • Local authority over siting and expansion

  • Public hearings before major approvals

  • Strong local review of water, wastewater, noise, vibration, and power impacts, with enforceable mitigation requirements

  • The right of communities to say no when a project threatens local resources

The people who live there should have more say than than donors and their lobbyists in Austin.

2. Put Water Protection First

Texas should not allow massive facilities to drain high-quality water supplies when safer alternatives are available.

I will push for policies that:

  • Prioritize recycled produced water, greywater, and other non-potable sources

  • Require data center build-out to include its needed infrastructure for water and wastewater

  • Require full public reporting of water sourcing and total usage

  • Include data center demand in regional and state water and energy planning

  • Protect aquifers, rivers, and local wells from overuse

Our drinking water should be for people first, not corporate convenience.

3. Make Corporations Pay Their Own Way

If a billion-dollar company needs new substations, transmission upgrades, pipelines, roads, or water infrastructure, taxpayers should not be stuck with the bill.

I support:

  • Corporations paying their own state and local taxes

  • Full-cost infrastructure requirements for large industrial users

  • Utility rate structures that prevent residential customers from subsidizing data centers

  • Buffering, sound control, and vibration mitigation must be built in and paid for by the developer, not shifted onto neighbors or taxpayers

  • Impact fees or similar mechanisms when local systems need expansion

  • Independent review of long-term grid and water costs before approval

No special deals. No hidden subsidies. No passing the bill to working families.

4. End Blank-Check Tax Giveaways

Tax incentives should be rare, transparent, and tied to real public benefit.

I will work to:

  • Review existing data center tax exemptions and abatements

  • End giveaways

  • Require clawback provisions if companies fail to meet job, investment, or community commitments

  • Publish all subsidy agreements in plain language for public review

If a project is profitable, it should not need a secret handout.

5. Demand Transparency and Accountability

Communities deserve facts before deals are signed.

I support:

  • Public disclosure of projected and actual water use

  • Public disclosure of projected and actual energy demand

  • Annual environmental and infrastructure impact reporting

  • Strong enforcement for permit violations or false reporting

If a company wants public trust, it can start with public honesty.

What I’m Fighting For

I’m fighting for a Texas where:

  • local communities stay in charge

  • water is protected

  • energy is affordable and dependable

  • families are not forced to subsidize global corporations

  • economic development actually serves the public

We can welcome innovation without surrendering common sense.

Bottom Line

Development should respect local control, use water responsibly, relying on alternatives like produced water and greywater, and pay the full cost of its impact.

Texas should work for its people first — not for corporate insiders looking for one more special deal.

AI is not just about servers. It also includes the financial systems that pay for AI. See my stablecoin guardrails page.