Water, water everywhere: Plano approves $29K water study for proposed Microsoft data center

If Plano is going to transition to a regional tech hub, like some city officials desire, it’s going to take water. Lots of water.

That’s because data centers often require large amounts of water to cool their processors. Some data centers, like the ones proposed across Yorkville, cool by air, but are more expensive for the developers to build.

The Plano city council approved a $29,850 water model study and analysis by the engineering firm HR Green Inc.

The study was requested by Microsoft, who purchased 500 acres of land west of Eldamain Road, north of the ComEd transmission lines, for the purpose of constructing a massive data center campus. Plano annexed the agricultural property in 2024, before rezoning it to manufacturing for the future data center construction.

City officials in several municipalities pursue data center developments because once completed, each building can generate up to $1 million in tax revenues annually. They also have minimal staffing requirements and upkeep costs.

Neighboring Yorkville has approved, or is considering, 12 separate data center developments across more than 3,000 acres. Data center plans near residential areas have receiving significant pushback from the town’s citizens.

Plano expects Microsoft to reimburse the city for the costs of the water study. The study will assess the effect of the development on Plano’s existing water distribution systems and measure its pressures and fire flows, according to city documents.

To get the ball rolling on the development, the city previously approved a $45,436 contract with HR Green, Inc. to conduct studies of the site to determine the necessary infrastructure requirements and the related costs. The firm is also conducting a traffic study of the area.

The study has already shown that the development site will need extensions of the town’s water main and sanitary sewer system. Town officials will also be tasked with approving a roadway expansion to the development site.