Data centers could account for up to 9% of Texas water use by 2040, UT Austin report finds

A new report from the University of Texas at Austin's Bureau of Economic Geology at the Jackson School of Geosciences projects that data centers could consume between 3% and 9% of Texas' total water supply by 2040, a significant increase from less than 1% today. This surge in demand is attributed to the rapid expansion of data center construction across the state, fueled by artificial intelligence and cloud computing, with over 400 facilities currently operating or under development. Mariam Arzumanyan, a fellow at the Bureau of Economic Geology, noted the uncertainty surrounding precise water usage figures due to varying cooling systems and energy sources employed by different data centers. The industry's substantial electricity demands also indirectly contribute to water consumption, as power generation often requires water. These findings coincide with worsening water shortages in Texas, where a recent state analysis estimated a need for $174 billion over 50 years to prevent a major water crisis. The issue has prompted increased scrutiny from lawmakers and environmental advocates regarding the industry's environmental footprint and its impact on water resources and the state's power grid. Last month, Texas lawmakers held a hearing to assess whether the state's existing infrastructure and regulations are adequately prepared for the explosive growth driven by AI and cloud computing, urging leaders and data center companies to implement additional measures to conserve water.