Texas data center expansion poses emerging risks to water resources, report finds

A new white paper from the Houston Advanced Research Center (HARC) is drawing attention to the growing water demands of data centers in Texas and the potential implications for drinking water resources if planning and policy do not keep pace with industry growth.

The report, Thirsty Data and the Lone Star State: The Impact of Data Center Growth on Texas’ Water Supply, finds that existing data centers in Texas already consume an estimated 25 billion gallons of water annually for power generation and cooling. By 2030, that demand could increase to between 29 billion and 161 billion gallons per year, potentially accounting for up to 2.7% of the state’s total water use.

“Texas is no stranger to industrial booms, having ridden waves of oil, gas, and manufacturing. But the data center surge presents a unique challenge that requires immediate attention,” said John Hall, president and CEO of HARC, in a press release. “Our analysis makes one fact unavoidable: When we talk about data centers, we must talk about water.”

According to the paper, current state water planning processes rely heavily on historical demand data and do not adequately account for the rapid, forward-looking growth of data centers. As a result, local water utilities and communities may be left to manage increased demand without sufficient state-level guidance or infrastructure support. “This leaves utilities and city managers to negotiate individually with multinational technology firms, often without the data or leverage necessary to protect local resources and residents,” said Dr. Margaret Cook, HARC vice president of water and community resilience and the paper’s lead author.

HARC’s recommendations include requiring large industrial users to report projected water use, incorporating forward-looking demand forecasts into the Texas State Water Plan, and encouraging water-efficient cooling technologies and alternative water supplies, such as brackish water reuse, to help safeguard long-term drinking water reliability.