State Senate Hearing Highlights Communication Gaps on Data Center Water Usage
A Texas Senate Committee hearing highlighted concerns over data center water usage and a lack of transparency from some operators. State officials, including Chairman Charles Perry, expressed dissatisfaction with the communication from "bad actors" like Beacon Data Centers, while agencies reported low response rates to water and energy use surveys. Data center companies like Google and QTS testified on their efforts towards sustainable practices, but legislators and local officials emphasized the need for better engagement and oversight.
The Texas Senate Committee on Water, Agriculture, and Rural Affairs held an interim hearing to address the significant water usage by data centers and the perceived lack of transparency from some operators. Chairman Charles Perry (R-Lubbock) voiced strong criticism against "bad actors," specifically naming Beacon Data Centers for operating in secrecy regarding its Westline Energy Infrastructure Campus in his district, and threatened legislative action to prevent such companies from implementing projects.
Testimony from the Texas Water Development Board (TWDB) and the Public Utility Commission of Texas (PUC) revealed low response rates to surveys designed to collect data on current and projected water and energy usage by data centers across the state. State Senator Lois Kolkhorst (R-Brenham) expressed concern that many facilities were not abiding by legal requirements to provide this information. State Senator Cesar Blanco (D-El Paso) emphasized the necessity of understanding water use for long-term planning.
Representatives from data center companies, including Lancium Technologies, Quality Technology Services (QTS), and Google, presented their companies' water and energy consumption practices. Ryan Kuithe of QTS stated the company pays for all infrastructure and energy and does not expect public subsidies. Ben Townsend of Google highlighted their use of closed-loop air cooling systems to reduce freshwater consumption at Texas locations in Haskell, Willbarger, and Armstrong Counties, and noted Google's site-level water use reporting. However, Chairman Perry warned that a lack of communication with lawmakers would lead to negative legislative outcomes.
Local officials, such as Caldwell County Judge Hoppy Haden, testified that they often only become aware of data center projects after private land sales and utility company engagements have occurred, complicating local oversight. Legislators debated the extent to which they could statutorily require better communication without unduly interfering with private contracts, but Chairman Perry indicated that non-communicative companies might face obstacles in state permitting.