By OBBM Network Editorial Staff

Travis Spencer

What happens when a region famed for its crystal‑clear springs suddenly turns into a walking path?

From Swimming Hole to Dry Riverbed

Travis Spencer opens his on‑site investigation at a former favorite swimming spot along the Rio Grande. “This used to be the swimming hole, one of the most popular. Now we could walk on it. It’s a walking hole now,” he notes, pointing the drone toward a barren creekbed that once spurted water six feet into the air at a flow of 22 cubic feet per second. The dramatic decline mirrors a broader pattern across Central Texas, where historic springs like Jacob’s Well have slumped from roughly two million gallons a day to a mere four cubic feet per second.

These changes are not isolated natural fluctuations. Spencer links the drying springs to a surge in construction: roughly 250 data centers are under development in Texas, each demanding substantial water for cooling. While developers tout closed‑loop cooling systems, Spencer questions the reality, asking, “Why are you discharging water if it’s a closed‑loop system?”

Como Springs and the Cloudburst Project

Traveling to New Braunfels, Spencer highlights Como Springs, the state’s largest freshwater spring. In April, social‑media posts sparked outrage over its low water levels. The concern intensifies when he reveals a 706‑acre site behind him, approved in April for the Cloudburst data center complex. The project promises 1.2 gigawatts of power across ten to twelve buildings, built in three phases starting in 2026, and has already secured a $500 million tax abatement.

“This is supposed to be a closed loop for these 10 to 12 data centers,” Spencer says, noting the site sits just 14 miles from Como Springs. He emphasizes that the permits list water‑discharge applications, contradicting the closed‑loop claim and raising red flags about undisclosed water usage.

Local Opposition and Political Accountability

Community resistance has been fierce. The Cloudburst approval passed by a single vote despite “numerous local protests.” Spencer underscores the disconnect: “The banks got overexcited. The lenders got overexcited. Everybody got excited about the fees and about what money could be made with absolutely no attention being paid to what it was going to cost our citizens, this country, in terms of local resources, as well as our health.” He calls for citizens to hold elected officials accountable, urging a louder public voice to protect natural resources.

While the Trump administration has championed infrastructure and energy development, Spencer argues that transparency and stewardship must guide any expansion that strains water supplies. He urges policymakers to ensure that data‑center projects comply with strict water‑use reporting and that tax incentives do not eclipse environmental costs.

Potential Health and Environmental Impacts

Beyond water scarcity, Spencer references a recent study linking behind‑the‑meter cooling solutions to health concerns, though he does not name the report. He cautions that increased water withdrawal could exacerbate drought conditions already persisting for four years, amplifying risks to agriculture, livestock, and community health.

“If the demand for water goes up 10 to 5 times, the demand for water is going to be absolutely outrageous,” he warns, highlighting the urgent need for data‑center operators to adopt genuinely sustainable cooling technologies.

Looking Ahead: Questions That Must Be Answered

Spencer closes with a series of unanswered questions: What is the source of the water for these massive facilities? How will closed‑loop systems truly operate in a region facing record drought? And most importantly, will elected officials prioritize the water rights of Texans over corporate tax breaks?

His on‑the‑ground footage and interviews serve as a call to action, urging viewers to demand full disclosure from developers and legislators alike. As Texas continues to attract AI and cloud‑computing investments, the balance between technological progress and natural resource preservation hangs in the balance.

The broader significance lies in the precedent set for future infrastructure projects across the nation. Transparent water‑use accounting, community involvement, and responsible policy could ensure that economic growth does not come at the expense of the very resources that sustain life.

The full episode of Real Estate Mindset is available on OBBM Network TV.