Rural Texas is sitting on the biggest economic opportunity it has seen in a generation, and most people have not connected the dots yet. Data centers are coming to this state whether anyone plans for them or not. The only question left is whether small towns end up with the schools, the jobs, and the tax base, or whether someone else writes the rules first.
Texas Railroad Commissioner Wayne Christian joins The Crude Truth to lay out the case. Data center expansion could push billions in private investment into parts of the state that have been waiting a long time for good news, with high paying jobs and real school funding attached. The hard parts get covered too. Electricity. Water. Farmland. Private property rights. Those questions are fair, and the communities absorbing this growth deserve straight answers on every one of them.
The thread running through all of it is power. AI runs on electricity, and reliable electricity in Texas runs on natural gas. That is not a talking point, that is load math. ERCOT is already feeling this demand curve, and it is the independent producers, the ones working leases nobody else wants, who are going to carry it. Growing the economy and protecting the people who live here are not opposing goals. They just require a plan, and Texas does not have one yet.
1. Rural America's Economic DeclineThe episode opens with the central concern that rural America is dying. Commissioner Wayne Christian uses specific examples like his hometown of Tinney Hall, Texas, where businesses have closed and families have had to leave to find work. The discussion emphasizes how rural communities have lost their economic foundations and how young people are forced to leave to find employment.
2. Data Centers as Economic SolutionThe primary focus is whether data centers can revitalize rural Texas economies. Christian argues that billion-dollar data center facilities can bring permanent, well-paying jobs (50+ jobs per facility) and significantly increase school funding through property taxes. He cites the example of a $100 million lithium facility in Wauking, Texas, which would generate $1 million annually in school property tax for 700 students.
3. The Governor's Data Center PauseTexas Governor Abbott implemented a pause on data center permitting and construction. Both hosts discuss whether this is a strategic pause to develop proper guidelines or a delay that could harm economic development. Christian supports the pause but emphasizes the need for a comprehensive "Texas plan" that addresses legitimate concerns while enabling development.
4. Political Opposition to Data CentersChristian claims that opposition to data centers is being driven by socialist politicians (Bernie Sanders, AOC) and funded by George Soros, with a $100 million PR campaign. He argues this is part of a larger "Great Reset" agenda to weaken American energy independence and shift power away from Texas.
5. Energy Security and ReliabilityA major theme is Texas's energy grid challenges. Christian criticizes the state's over-reliance on wind and solar, which proved unreliable during Winter Storm Uri. He argues that natural gas should be the primary energy source and criticizes the lack of new natural gas or coal-fired power plants despite increasing demand.
6. Water Usage ConcernsWater is identified as a legitimate concern for data centers. However, Christian provides context: oil and gas uses less than 3% of Texas water, and data centers use only 4% nationally. He explains that data centers recycle water like swimming pools and proposes solutions using recycled oil field water and thermal water sources.
7. Private Property Rights vs. Government RegulationChristian strongly opposes giving local governments power to restrict data centers, arguing this represents socialism and threatens rural property rights. He warns that allowing zoning restrictions for data centers could lead to restrictions on other rural industries like chicken farms and cattle ranches.
8. Oil and Gas Industry ChallengesThe discussion includes how small independent oil and gas operators are disadvantaged compared to large international corporations. Christian notes that independents produce 60-70% of Texas oil and gas but lack legislative influence. He also criticizes preferential treatment given to wind and solar over traditional energy sources.
9. Global Energy ResponsibilityChristian emphasizes that Texas and America have a moral obligation to provide energy to developing nations. He points out that one-third of the world relies on wood and animal manure for energy, and many lack basic electricity, clean water, and medicine.
10. The Need for a Comprehensive Texas PlanBoth hosts stress the importance of developing balanced policies that address environmental and community concerns while enabling economic development and maintaining Texas's energy independence and leadership.
Whether you work in the patch, live in one of these towns, or you are just trying to understand where this state is headed, this conversation is worth your time.
And that is ????️ The Crude Truth
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