Texas Data Centers Under Investigation For Concealing Water Usage From State Regulators
Data centers across Texas are under a state investigation for allegedly concealing their water usage from regulators. This non-compliance with reporting mandates is hindering the Texas State Water Plan and risks underfunding vital water projects in growing communities.
Dozens of data centers across Texas are currently under state investigation for failing to comply with water usage reporting mandates from the Texas Water Development Board. This probe highlights the increasing conflict between the rapid growth of data center infrastructure and effective water management throughout the state, with counties such as Harris, Travis, Dallas, Tarrant, and Bexar cited as particularly impacted areas.
The non-compliance by these facilities creates a significant information gap for the Texas State Water Plan, which is updated every five years to forecast future regional water needs and allocate funding for infrastructure. Without accurate data center consumption figures, there is a risk that growing communities will not receive adequate funding for crucial water treatment and supply projects.
Modern hyperscale data centers, which have replaced smaller facilities, can consume between 1 million and 5 million gallons of water daily. While the industry has been shifting towards more efficient closed-loop recirculating systems to reduce the evaporative cooling that previously led to vast water loss, the lack of verified usage amounts remains a critical challenge for state regulators.