Technology could cut water usage by data centers. Will it be required by Texas law?

Technology could cut water usage by data centers. Will it be required by Texas law?

News ClipKEYE·Austin, Travis County, TX·9/3/2026

Texas lawmakers are proposing new regulations to reduce water usage by data centers across the state, specifically targeting evaporative cooling systems. State Senator Charles Perry indicated that such systems would not be permitted in future legislation. This comes as concerns grow over the significant power and water demands of the expanding data center industry.

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QTS
Gov: Texas lawmakers, State Sen. Charles Perry, Senate hearing, Austin City Council

Texas lawmakers are considering new regulations aimed at significantly reducing water consumption by data centers as the industry rapidly expands across the state. During a recent Senate hearing, State Senator Charles Perry, R-Lubbock, voiced strong opposition to evaporative cooling systems, which require a continuous water input, stating that such practices "won't be allowed coming out of next session." Lawmakers are expected to address this issue further in January.

The discussion highlighted different cooling technologies. Evaporative cooling uses water that dissipates into the air, while closed-loop systems circulate coolant through servers. Researchers, including Margaret Cook of the Houston Advanced Research Center (HARC), explained that the water footprint of closed-loop systems depends on whether they use dry/air cooling (low water use) or water chillers/cooling towers (significant water use). Cook suggested implementing water-efficiency standards rather than technology mandates, noting that dry cooling can increase electricity demand.

Companies like QTS are already responding to these concerns. Ryan Kuithe, Senior Vice President of Facility Operations at QTS Data Centers, informed lawmakers that all data centers built by QTS since 2019 utilize closed-loop systems that consume virtually no water for cooling. Wärtsilä Energy also discussed its engine power plants, which provide hundreds of megawatts to data centers while using significantly less water than turbine technologies. Separately, the Austin City Council has also moved forward with its own new data center regulations.