Report: Texas data centers may increase pressure on the state’s strained water supplies

A new report from the University of Texas at Austin's Jackson School of Geosciences projects that data centers could dramatically increase pressure on Texas's water supply, potentially accounting for 3% to 9% of the state's total water use by 2040. This represents a significant jump from less than 1% today, driven by the rapid expansion of the data center industry in Texas, fueled by the demand for artificial intelligence and cloud computing. Researchers estimate over 400 data centers are either operational or under construction statewide. Mariam Arzumanyan, a fellow at UT Austin's Bureau of Economic Geology, noted the uncertainty surrounding exact water usage, as different facilities employ varying cooling systems and energy sources. Data centers require substantial water for cooling servers and for generating the vast amounts of electricity they consume. The industry's escalating electricity demand, strain on local water resources, and long-term environmental footprint have drawn increased scrutiny from lawmakers and environmental advocates. The findings are particularly pertinent given Texas's worsening water shortages. A recent state analysis indicated a need for $174 billion over the next five decades to avert a major water crisis, as prolonged drought, population growth, and industrial demand continue to outstrip existing supplies. Corpus Christi, for instance, has faced over a year of water restrictions due to persistent drought and shrinking reservoir levels. Last month, Texas lawmakers convened a hearing to investigate how the burgeoning data center sector might affect the state's power grid and water resources. They questioned the adequacy of Texas's current infrastructure and regulations to manage the explosive growth tied to AI and cloud computing. Researchers from UT Austin emphasize that state leaders and data center companies must implement additional measures to alleviate the pressure on Texas's precious water supply.