Texas data centers may increase pressure on the state’s strained water supplies, report says

A new report from the University of Texas at Austin estimates that the booming data center industry in Texas could dramatically increase the state's water consumption, potentially accounting for 3% to 9% of total water use by 2040, up from less than 1% currently. This growth is driven by the expansion of artificial intelligence and cloud computing, with over 400 data centers operating or under construction. Researchers, like Mariam Arzumanyan from UT Austin's Bureau of Economic Geology, highlight uncertainties surrounding the exact water usage due to varied cooling systems and energy sources. The findings emerge as Texas grapples with worsening water shortages, exemplified by Corpus Christi's year-long water restrictions, and a projected need for $174 billion over 50 years to avert a major water crisis. State lawmakers recently held a hearing to examine the impact of rapid data center expansion on Texas's power grid and water resources, questioning the state's preparedness. Researchers recommend increased transparency on data center water use, improved coordination among industry, utilities, and local governments, and the adoption of alternative water sources such as reclaimed wastewater to mitigate pressure on existing supplies.