Texas Faces Growing Water and Energy Strain as Data Centers Expand

Editorial: The Thirst for Data: Texas Must Mandate Water and Energy Self-Sufficiency for New Data Centers

As the digital age accelerates, Texas finds itself at a critical juncture, balancing immense economic opportunity with escalating environmental pressures. The burgeoning data center industry, fueled by artificial intelligence and cloud computing, is a significant driver of this growth, promising jobs and investment. However, this expansion comes at a steep cost to the state’s already strained water and energy resources, particularly in the face of persistent drought conditions. It is time for Texas to implement stronger regulations, requiring new data centers to provide their own water and energy supplies, thus ensuring sustainable growth and protecting the state’s vital resources.

The Growing Appetite of Data Centers

Data centers, the unseen backbone of our digital lives, are notoriously resource-intensive. They house vast arrays of servers that require constant operation, generating significant heat that necessitates extensive cooling systems. This cooling process, in particular, consumes colossal amounts of water. Projections indicate that data centers in Texas could consume an astonishing 49 billion gallons of water in 2025, a figure expected to skyrocket to nearly 400 billion gallons annually by 2030. This would represent approximately 6.6% to 7% of the state’s total water usage.

This immense water demand is particularly concerning given that much of Texas experiences regular drought. In areas like Medina County, which is under an “exceptional drought,” data centers are reportedly sourcing water from already stressed aquifers like the Edwards Aquifer, a heavily regulated groundwater source. In San Antonio, data centers used 463 million gallons of water between 2023 and 2024, even as residents faced strict water restrictions. This competition for a finite resource pits essential human needs and agricultural demands against the operational requirements of technology infrastructure.

Beyond water, the energy demands of these facilities are equally staggering. Data centers in Texas consumed nearly 22 million megawatt-hours of electricity in 2023, accounting for 4.6% of the state’s total electricity consumption. Projections suggest this demand could at least double by 2030. The rapid growth of AI is a primary driver, with queries to AI platforms consuming significantly more energy than standard search engines. This escalating demand places immense pressure on the Texas power grid, managed by the Electric Reliability Council of Texas (ERCOT), which is already facing challenges related to capacity and reliability, as evidenced by past winter storms.

Regulatory Gaps and Calls for Action

Currently, Texas lacks comprehensive mandates requiring data centers to report their water usage or to implement strict conservation measures. While some legislative efforts are underway, such as Senate Bill 6, which imposes new regulations on large energy users, including data centers, regarding grid costs, disclosures, and emergency cutoffs, these measures primarily address energy grid reliability rather than mandating self-sufficiency in water or energy provision. Some in the industry are exploring solutions like co-locating data centers with renewable energy facilities, such as solar and wind farms, or utilizing advanced cooling technologies to reduce water consumption.

However, the scale of the challenge necessitates a more proactive and direct approach. The idea that new data centers should be required to supply their own water and energy is gaining traction. This could involve on-site water recycling and collection systems, such as rainwater harvesting on large factory rooftops, and dedicated renewable energy generation or storage. Such requirements would not only alleviate the strain on public resources but also incentivize innovation in sustainable data center design and operation. Protecting rural communities from noise, light, and water pollution associated with these massive facilities is also a growing concern.

The Path Forward: A Call for Sustainable Infrastructure

The rapid expansion of the data center industry in Texas presents a clear news item demanding attention. To ensure that this technological boom does not lead to an environmental crisis, state leaders must enact robust regulations. Requiring new data centers to develop their own water and energy supplies is a prudent step. This includes mandates for on-site water capture, recycling, and efficient cooling technologies, as well as the incorporation of renewable energy sources or dedicated power generation.

By implementing these requirements, Texas can position itself as a leader in sustainable digital infrastructure, fostering economic growth while safeguarding its invaluable natural resources for future generations. Ignoring the escalating demands placed upon the state’s water and energy infrastructure in favor of unchecked development would be a grave disservice to the people and the long-term prosperity of Texas. The time for decisive action and a commitment to self-sufficient, environmentally responsible data center development is now.