
2027 State Water Plan Receives Initial Approval Amid Concern Over Missing Data Center Analysis
The Texas Water Development Board has given initial approval to the 2027 State Water Plan, a comprehensive strategy for the state's water needs over the next 50 years with an estimated cost of $174 billion. However, critics and public commenters have expressed concern that the plan lacks a crucial analysis of water usage by data centers and artificial intelligence facilities. The board acknowledges the growing interest and plans to expand data collection for future projections.
The Texas Water Development Board (TWDB) has granted initial approval to the 2027 State Water Plan, which outlines proposed actions for meeting the state's water needs over the next five decades. The plan carries a substantial estimated cost of $174 billion, more than doubling the previous 2022 plan, a rise the board attributes to inflation, updated project costs, an extended planning horizon, and supply chain impacts.
Despite the significant investment and focus on drought preparedness, a key criticism from several Texans and 28 public comments is the plan's omission of a detailed analysis of water usage by data centers and artificial intelligence facilities. While the plan acknowledges the growing interest and states the TWDB tracks such usage, it notes that limited historical data prevented adjustments to long-term demand projections in this current cycle.
The TWDB plans to enhance its data collection efforts to improve future projections related to data center water demand. The board is expected to adopt a final state water plan, Phase II, later this year, which will include additional analysis. However, the state water plan itself does not automatically fund projects; related entities are responsible for their selection, financing, design, and construction.