Data centers rise in Denton From the cover
What they’re saying
Two-minute impact
stretched too thin.” Qumulus AI Director of Engineering Spencer Smith said at a Dec. 17 planning and zoning meet- ing that its Denton data center will use a closed- loop cooling system, which is much quieter than traditional cooling methods, and that there will be no water usage. Core Scienti c’s systems are also closed looped, according to its website. Puente said neither facility is expected to have a signi cant impact on the city’s water utilities, and any wastewater generated will be routed through Denton’s wastewater treatment plant. Still, residents like Treat are not convinced that there will not be downsides to the data centers. He cited uncontrollable incidents like the grid failure from Winter Storm Uri in 2021 as to why he is skeptical about data centers in Denton. “Our city leaders are doing the best they can while dealing with harsh budget cuts from federal and state sources, but citizens need to stay engaged now more than ever. Our community’s future is on the line,” Treat said.
Core Scienti c’s expansion is expected to bring in $1.2 billion in contracted revenue to its Denton plant and a $6.1 billion real property investment, according to news releases from the company. “By expanding our capacity in Denton, we’re building one of the largest [Graphics Processing Unit] supercomputers in North America,” Core Scienti c CEO Adam Sullivan said in a 2025 news release. Qumulus AI will lease land from the city at a rate of about $20,000 per year for 10 years, according to a lease and power purchase agreement approved at an Aug. 6, 2024, council meeting. Residents cited concerns on social media about the increase in electric bills and city water usage after the data centers were approved. Denton resident Shaun Treat said the long-term e ects of data centers in the community are unknown. “It’s a risky proposition for Denton,” Treat said. “Data centers incentivize municipalities with promises of jobs and tax revenues, but there’s zero backup plan if our water and energy resources get
Development is underway of Core Scienti c and Qumulus AI’s facilities, which house information technology infrastructure. Core Scienti c is transitioning from Bitcoin mining to high-performance computing, and Qumulus AI provides high-performance computing cloud and graphics processing unit services, their websites state. Tony Puente, general manager of Denton Municipal Electric, the city’s electric utility service, said city sta detailed the possible economic impact of having data centers in Denton in the 2020 economic plan.
Economic impact in Denton
Core Scienti c
After estimated completed expansion in 2027, over 10 years: $430 million in total economic impact $194 million in property tax revenue
to the city of Denton 78.85 acres of land
Water usage for Core Scienti c
On April 5, Denton City Council member Brian Beck requested a report on the water use impact of the Denton data centers. While the Qumulus AI individual estimates were not available, city sta documented industry- based water use estimates for both centers combined, as well as Core Scienti c individually.
Qumulus AI
After operations begin in 2028: $20,000 a year to the city for 10 years from land leased $4.8 million to the city from franchise fees $2.5 million in net income to DME over ve years 4 acres of land
Discharge water is removed and treated o -site by a third party.
A closed-loop cooling system in the compute area requires an estimated initial ll of 1.5 million to 3 million gallons , plus a onetime ush.
Annual water loss is estimated at about 2% of the initial ll.
The o ce building is expected to use roughly 2.4 million gallons per year.
SOURCES: CITY OF DENTON, CORE SCIENTIFIC, QUMULUS AI, DENTON MUNICIPAL ELECTRIC COMMUNITY IMPACT
SOURCES: CITY OF DENTON, DENTON MUNICIPAL ELECTRIC COMMUNITY IMPACT
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