In the sun-scorched expanses of West Texas, one man is transforming the region from dry desert to a thriving hub of innovation and technology—all thanks to water. David Capobianco, a savvy entrepreneur and co-founder of Five Point, has turned wastewater into a goldmine by setting his sights on AI data centers. It’s a wild idea in a land where the tumbleweeds and oil pumps stroll along together, but Capobianco sees something that many others have overlooked: the value of water in a place that seems perpetually thirsty.
The Permian Basin, known primarily for its vast oil reserves, produces a staggering 7 million barrels of oil every single day. But here’s the kicker: it also pumps out 25 million barrels of water—enough to quench the thirst of New York City for an entire day! Capobianco emphasizes that without this water, oil production would come to a screeching halt. The salty, mineral-laden wastewater, often dismissed as a waste product, has become the linchpin of Capobianco’s strategic vision to lure in data centers that require vast amounts of water for their operations.
Capobianco’s entrepreneurial spirit kicked into high gear about three years ago, but his journey began long before that. After working with Microsoft co-founder Paul Allen and investing heavily in pipeline infrastructure, he decided to create Five Point with a sharp focus on consolidating water resources. By investing his own money, he grew a collection of companies that now manage a network of pipelines and processing facilities across Texas and New Mexico. With the rise of data centers—nearly 400 planned in Texas alone—Capobianco’s foresight is paying off in a big way.
West Texas isn’t just pumping out water; it also boasts miles of low-cost land and the cheapest natural gas in the world. This unique combination makes it an irresistible draw for tech giants hungry for resources. Capobianco has already spent approximately $2.5 billion and is poised to invest another $5 billion over the next five years, viewing it as a Texas-sized gamble that is sure to pay off. He has cleverly partnered with oil companies to utilize existing infrastructure rather than building everything from scratch, making his operations both efficient and profit-oriented.
As he continues to ride the wave of success, Capobianco isn’t merely betting on water and gas—he’s capitalizing on the collective potential of these resources. The profits from his ventures, particularly the San Mateo joint venture, are skyrocketing, with significant earnings before interest, taxes, depreciation, and amortization (EBITDA) reported. As the demand for data centers grows, so does the likelihood that his innovative approach will keep West Texas at the forefront of the tech and energy revolution.
In a state where the skies are endless and the oil wells are plentiful, David Capobianco is the quintessential entrepreneur who saw a reservoir of opportunity where others saw just a desert. With the combination of water, land, and natural gas, he’s not just quenching the thirst of data centers—he’s tapping into a bright future that promises to transform the arid landscapes of Texas into lush corridors of technology and progress. One has to wonder: In this unexpected oasis, who is really watering the future?
