Austin eyes water rules for high-use industries, data centers

Austin eyes water rules for high-use industries, data centers

News ClipAustin Current·Austin, Travis County, TX·7/24/2026

The Austin City Council has approved a resolution directing the City Manager to explore new water conservation measures for high-water-use industries, including data centers and semiconductor manufacturers. This initiative aims to ensure that economic growth does not strain the city's long-term water supply. The proposed measures could require businesses to use recycled water or install onsite water reuse systems.

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Gov: Austin City Council, City Manager, Water Forward Task Force, Austin Water, Climate, Water, Environment, and Parks Committee

The Austin City Council recently passed a resolution directing the City Manager to investigate stronger water conservation requirements for industries that consume large amounts of water, such as data centers and semiconductor manufacturers. The move comes as Austin aims to attract these businesses for economic growth while simultaneously addressing concerns about the city's water supply.

Council Member Mike Siegel highlighted the growing concern in Texas regarding water supply impacts from large industries. The resolution, prompted by recommendations from the community-led Water Forward Task Force, aims to ensure high-volume users not only pay their fair share for water and infrastructure but also implement significant conservation practices.

Potential measures include requiring major water users to reduce potable water consumption by utilizing recycled water, connecting to the city's reclaimed water system, installing onsite reuse systems, or employing rainwater/condensate capture technologies. The resolution also asks the City Manager to evaluate the appropriateness of the current 85 million gallons per year 'large-volume customer' threshold and to consider requiring City Council approval for applications that do not meet new conservation standards.

Environmental attorney Paul DiFiore, a member of the Water Forward Task Force, praised the resolution as a positive step but stressed the importance of increasing transparency around the approval process for large-volume water users. He noted that the resolution did not fully address the task force's recommendation for a public approval process for new major water users.