The latest SPACE City Panel survey, conducted by the Center for Public Policy at the Hobby School of Public Affairs, arrives as data center construction in Texas explodes. (Credit Getty Images)
Key Takeaways
- While a vast majority of Houston-area residents (85%) utilize AI, nearly 63% oppose the construction of data centers within one mile of their homes due to overwhelming concerns regarding power grid reliability and energy demand.
- Public opposition is notably flexible, as 32% of residents who initially opposed local data center projects would become supportive if the facilities were powered by renewable energy instead of fossil fuels.
- In a reversal of common tech stereotypes, Gen Z (ages 18-29) is the most negative and least frequent user of AI in education, while residents aged 45 and older view AI’s impact on learning as a significant "net positive."
A new University of Houston survey reveals a striking paradox in the nation’s energy capital: while 85% of Greater Houston-area residents utilize artificial intelligence, they remain concerned about the long-term impact of the infrastructure required to power it.
The latest SPACE City Panel survey, conducted by the Center for Public Policy at the Hobby School of Public Affairs, arrives as data center construction in Texas explodes. Experts estimate that 6.5 gigawatts of capacity — roughly one-fifth of the total U.S. pipeline — will join the Texas grid by 2030, with Houston serving as a primary hub.
The report highlights a growing tension between digital convenience and physical infrastructure. While 65% of respondents reported moderate to high AI usage over the past year, nearly 63% oppose having a data center built within one mile of their home.
“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” said Soran Mohtadi, post-doctoral fellow at the Hobby School and report researcher. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”
When asked how AI will impact the environment, education, economy and workforce over the next five years, 58.5% of respondents said it will have negative effects, while only 19.2% expected a positive effect.
The survey also found a notable demographic split regarding AI’s role in education. While younger demographics — those ages 18-29 — showed the highest level of negativity, respondents ages 45 and older generally view AI as a "net positive" for education.
“Interestingly, the younger generation also reported the lowest AI usage among all age groups, and at the same time, they're the ones who oppose it the most,” said Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School.
Perez Arguelles noted this skepticism might stem from the stress of entering a labor force undergoing rapid, AI-driven disruption.
Weighing in on the Impact
Among those who oppose nearby data centers, 80% cited the massive electricity demand as their main concern. Perez Arguelles said this anxiety is fueled by recent history, as residents are increasingly sensitive to grid reliability following recent outages and price hikes.
The Electric Reliability Council of Texas projects the state’s electricity demand could reach 218 gigawatts by 2031 — more than double the record peak set in August 2023. Data centers alone are expected to account for 86 gigawatts of that new demand.
“Texas’ grid is already facing pressure from population growth, extreme weather and rising industrial demand,” Mohtadi said. “When residents say they are concerned about data centers, they’re mostly referring to grid reliability and affordability.”
While data centers require enormous volumes of water for cooling, Greater Houston-area residents currently view water as a long-term policy issue rather than an immediate crisis. Respondents ranked water usage as their third-biggest concern of having data centers built in their community.
“Water availability doesn't seem to be an issue right now for respondents, because we don't see it every day, but it's a potential future issue,” Perez Arguelles said. “Data centers usually need high amounts of water, so as data centers are being built closer to urban areas like Houston and Austin, this is going become more of an issue.”
Other takeaways from the report include:
- One-third (32%) of respondents who initially opposed a local data center said they would be more supportive if the facilities were powered by renewable energy instead of fossil fuels.
- More than 75% of respondents across party lines believe that data centers and technology companies — not residents through higher rates — should bear the cost of the necessary infrastructure upgrades.
- A majority of respondents (57.6%) hold Texas regulators and lawmakers responsible for water supply challenges, while only 31.5% blame the technology companies themselves.
The survey comes as Texas legislators weigh nearly 20 bills related to AI, ranging from privacy protections to tax breaks for data center developers.
“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Perez Arguelles said. “This issue is going to be become more important in years to come, so this is just the beginning.”
The full report is available on the Hobby School website. Previous SPACE City Panel reports from this wave examined public sentiment on U.S. Immigration and Customs Enforcement and the Iran War. Future reports will look at respondents’ confidence in the political climate, and neighborhood characteristics and health.