Lawmakers question lack of information about water usage by data centers
Texas state senators questioned data center water usage and regulatory transparency during a recent hearing, with agencies reporting low compliance rates for water use surveys. Lawmakers plan to introduce bills to regulate the industry amid concerns over increasing water and electricity demands. Local opposition groups are worried about the rapid expansion of data centers and the potential for grandfathering projects before new regulations are in place.
Texas state senators recently held a hearing to address concerns about the significant water usage by data centers across the state, pushing for more transparency and data from state agencies. The Senate Committee on Water, Agriculture, and Rural Affairs heard testimony from the Texas Water Development Board (TWDB) and the Public Utility Commission (PUC), revealing that only 30% of 324 data centers responded to mandatory water use surveys, with some lacking definitive contacts. State Sen. César Blanco expressed concern over the lack of oversight, likening the situation to the "Wild West."
Researchers from the University of Texas at Austin's Bureau of Economic Geology estimated that data centers used 33 billion gallons of water in 2025, about 0.5% of the state's total usage, with projections for significant increases. Committee Chairman Charles Perry announced plans to file bills in the upcoming legislative session to regulate the data center industry, citing a need to address "bad actors." Representatives from companies like Google and QTS Data Centers testified, emphasizing their commitment to sustainable practices and local infrastructure support.
However, community members, such as Claudia Hollern from Caldwell County, voiced concerns about the rapid expansion, particularly near a planned 4,000 MW campus by Tract. Hollern, part of the Caldwell Data Center Action Team, highlighted worries about the strain on Texas's power grid and the combined water demands for both cooling data centers and electricity generation. She emphasized the need for immediate legislative action to prevent projects from being grandfathered in before new regulations are established.