Austin's Winter Storm and its Impact on Tech Migration

Austin is generally recognized for its temperate winter climate. However, a severe winter storm impacted the state on February 12th, initiating over a week of sub-freezing temperatures. This event has triggered a statewide disaster, leaving millions of Texans without essential services like electricity or water, or both.

The Scope of the Disaster

Determining the complete extent of the damage – encompassing loss of life, property destruction, and economic repercussions – remains premature. Nevertheless, it is evident that this disaster will have far-reaching and devastating consequences. The severity of the situation was underscored when Austin-area hospitals themselves experienced water outages this week.

My household experienced multiple power outages beginning last Thursday, with restoration occurring intermittently. By February 17th, water service was lost, and the timeline for its return remains uncertain. While acknowledging that others face more dire circumstances, this experience has been profoundly humbling. It involved boiling snow and ice for sanitation purposes and carefully rationing remaining bottled water, coupled with concerns about frozen and potentially burst pipes. Fortunately, heating has been maintained in recent days, though many residents still lack power.

Austin's Recent Growth and the Underlying Issues

Over recent months – and indeed, years – Austin has garnered significant attention for a different set of headlines. A growing number of technology companies, founders, and investors are either relocating their headquarters to the city (Oracle), establishing substantial manufacturing facilities (Tesla), or opening new offices (Apple, Google, Facebook), or seriously considering such moves.

The absence of a state income tax is a major incentive, alongside comparatively affordable housing, land, and office costs when contrasted with the Bay Area. This trend, already underway, has been accelerated by the pandemic's encouragement – and in some cases, necessity – of remote work arrangements.

Ironically, factors contributing to the state’s increased attractiveness to businesses have also played a role in the current crisis. Reduced tax revenues translate to diminished funding for crucial infrastructure development.

Deregulation and Grid Vulnerability

The issues extend beyond mere funding. Numerous other states have endured freezing temperatures without experiencing the widespread power and water outages currently plaguing Texas. As reported earlier this week by The Washington Post, the state’s decision to deregulate its electricity market has created “a financial structure for power generation that offers no incentives to power plant operators to prepare for winter.” Critics contend that, in the pursuit of deregulation and free markets, Texas has established an electric grid prioritizing low prices over reliable service.

Elon Musk even expressed his disappointment regarding the situation on Twitter.

Public Reaction and Future Implications

Texas has faced considerable criticism for its handling of this crisis, both in terms of inadequate preparation and perceived mismanagement. The question arises: will these events diminish Austin’s appeal as a potential relocation destination for technology companies and investors? Will this discourage individuals from moving to the area? It is also noteworthy that some individuals who previously avoided Austin due to its hot summers are now criticizing the city and state for the impacts of the winter storm.

To gauge public sentiment, I consulted Twitter, yielding predictably diverse and passionate responses.

Twitter Responses

• Many Austinites defended their city and lauded the community spirit displayed during the crisis:

  https://twitter.com/dbdriscoll/status/1362556911640576002?s=20

  https://twitter.com/arlogilbert/status/1362549990992838656?s=20

• Others expressed disgust and disappointment with the situation:

  https://twitter.com/shelbymichellle/status/1362549208163655681?s=20

• Some individuals indicated they would reconsider moving to Texas due to the lack of preparedness:

  https://twitter.com/schmubba/status/1362745156794019848?s=20

  https://twitter.com/privacyguru/status/1362551399834263553?s=20

  https://twitter.com/AndrewKemendo/status/1362569880063651843?s=20

  https://twitter.com/timmullaney/status/1362584593132638208?s=20

  https://twitter.com/ceonyc/status/1361882468723290113?s=20

• Others dismissed the event as insufficient to deter potential migrants, noting that natural disasters occur globally:

• Some joked that the disaster was a deliberate attempt to discourage Californians from relocating:

Looking Ahead

Having lived on both the East, West, and Gulf Coasts, I recognize the advantages and disadvantages of each. While I do not believe this crisis will entirely prevent people from moving to Austin, I contend that the state could – and should – have been better prepared following the deregulation of its electricity market. My heart goes out to all those suffering in the city and state, and my immediate hope is for a swift return to normalcy, allowing us to focus solely on addressing the ongoing COVID-19 pandemic. It’s a situation I never anticipated longing for.

Let us hope that the influx of technology professionals will foster innovative solutions to mitigate the risk of similar disasters in the future.