Five Point's David Capobianco Invests in Water Infrastructure for AI Data Centers
David Capobianco, co-founder of Five Point, leverages Texas and New Mexico's water resources to attract AI data centers, investing $2.5 billion with plans for an additional $5 billion. This strategy capitalizes on the region's surplus of produced water, essential for data center operations, amid a growing demand for such facilities in the U.S.
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Five Point, co-founded by David Capobianco, has invested $2.5 billion and plans to invest an additional $5 billion in creating infrastructure for AI data centers in Texas and New Mexico. The region generates 25 million barrels of water daily alongside 7 million barrels of oil, with Capobianco processing 6 million barrels of wastewater each day through an extensive pipeline network.
His companies, including WaterBridge and Deep Blue, focus on utilizing produced water, which historically was discarded, as a critical resource for data centers. The strategy has proven lucrative as nearly 400 data centers are planned or operational in Texas alone. The success of this model suggests a strong potential for profitability, but attracting skilled labor in the sparsely populated areas poses a significant challenge.
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