Most data centers won't share data about water use with Texas lawmakers
Texas lawmakers are concerned about the significant water consumption by data centers and the industry's failure to report water usage, hindering the state's future water planning. Many data centers are not complying with state law to report their water consumption, making it difficult for the Texas Water Development Board to accurately assess the impact on water supplies. Lawmakers are considering strengthening disclosure and enforcement requirements.
Texas lawmakers are expressing significant concern over the substantial water usage by data centers and the industry's widespread failure to disclose its water consumption data. During a recent House hearing, the Texas House Natural Resources Committee revealed that most data center facilities surveyed by the state have not reported their water use, as required by law, making it challenging to plan for future water shortages in the state.
State Rep. Cody Harris, the committee's Republican chairman, highlighted the growing conflicts in communities due to rapid data center development and companies' refusal to engage with residents or disclose their demands on local water and electricity systems. Harris specifically criticized developers like Diode Ventures and Calypso for declining invitations to testify before the committee, stating they "just simply didn't want to face tough questions." He noted that data centers use water differently, with evaporative cooling systems consuming large amounts, while closed-loop or air-cooling systems may reduce direct water use but increase electricity demand, which also has a water footprint.
Temple McKinnon, water supply planning director for the Texas Water Development Board, informed lawmakers that the agency's survey lacks facility-level detail and suffers from a low response rate. Only about 17% of the 341 identified data centers for the 2025 survey had responded at the time of the hearing. State Rep. Brad Buckley, a Republican, called the 17% response rate "terrible" and questioned the accuracy of the state water plan built on such incomplete data. Rep. Trent Ashby also expressed concern about data centers in counties without groundwater conservation districts, which could pump unlimited amounts of groundwater without regulation.
Despite the legal requirement for data centers to respond to the state survey, enforcement has been lacking. Lawmakers indicated plans to strengthen disclosure and enforcement requirements in the next legislative session to ensure transparency regarding water utilization, especially as Texas faces projected significant water shortages in the coming decades.