Data Center Developer Eyes Texas Water Standards

Compass Datacenters pledges to work with Governor-elect Hinojosa on industry standards, citing waterless cooling as its model.

Updated on Nov. 5, 2026 in Data Centers

Isometric editorial illustration of a long, low data center building with rooftop cooling units on flat, dry ground under an open sky, in oxblood, slate, and cream. — Compass Datacenters pledged to work with Governor-elect Hinojosa on industry standards after the November 4, 2026 election, pointing to its waterless cooling model. AI Illustration. Upload story photo >

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Compass Datacenters, a Dallas-headquartered developer of Class A data center campuses, issued a congratulatory statement to Governor-elect Hinojosa following the November 4, 2026 election. The statement is a public message of support, not a policy action or project announcement.

Why it matters

The statement signals that a major data center developer is positioning itself to work with Texas's incoming administration on industry standards. Its emphasis on hybrid cooling that uses no water during operations points to water use as a live issue in data center siting in the state.

The statement describes Compass Datacenters' hybrid cooling system as using no water during operations, but it provides no energy-efficiency, capacity or benchmark figures to compare against conventional cooling. No measured performance data accompanied the announcement.

The players

Compass Datacenters

A Dallas-headquartered developer and operator of Class A data center campuses, backed by Ontario Teachers' Pension Plan, Brookfield Infrastructure and KKR.

Chris Crosby

Founder and Chief Executive Officer of Compass Datacenters, leading the company's development of large-scale data center campuses.

The details

Compass Datacenters develops and operates Class A data center campuses, the highest-specification tier of facility used for large-scale computing. The company's hybrid cooling approach, which the statement says uses no water during operations, is designed to remove heat from servers without drawing on water supplies. The company is backed by Ontario Teachers' Pension Plan, Brookfield Infrastructure and KKR.

November 4, 2026: Compass Datacenters issued its congratulatory statement on Hinojosa's election.

The Tech Race

Compass Datacenters, backed by institutional investors, is competing in the buildout of large Class A campuses across Texas. The company's public positioning around waterless cooling places it alongside other developers seeking to differentiate on resource use.

The statement does not change service, pricing or availability for Texas residents. Any effect on Texans would depend on future policy decisions and on data center projects that have not been announced in this statement.

The takeaway

Watch whether Compass Datacenters or other large developers announce specific proposals to the Hinojosa administration on data center water use and grid standards in the coming months. A named policy filing or a published water-use figure from a Texas campus would show whether the waterless cooling claim is being translated into regulation.