Texas water supply: Data centers could make up 9% of demand by 2040, paper finds

A new paper from the University of Texas at Austin projects that data centers could account for 3% to 9% of Texas's water supply demand by 2040, a substantial increase from the current less than 1%. This projection places data center water usage on par with the 7% currently consumed by the state's manufacturing sector. The rising demand is attributed to the rapid growth of data centers, particularly those supporting artificial intelligence, which require significant water for cooling electronic components and generating power. Mariam Arzumanyan, a postdoctoral fellow at the Bureau of Economic Geology, noted the considerable uncertainty surrounding data center water use, citing a lack of unified understanding regarding cooling technologies and their water demands. This issue is particularly critical as Texas is already grappling with diminished groundwater supplies and ongoing drought conditions, affecting cities such as Pflugerville and Corpus Christi. A state analysis from April indicated that $174 billion would be needed over the next 50 years to avert a severe water crisis, nearly double the previous estimate. Researchers, including Vaibhav Bahadur, an associate professor at UT Cockrell School of Engineering, are developing tools and techniques to predict both direct and indirect water use by emerging data centers. Ning Lin, chief economist at the bureau, emphasized the need for shared definitions and a common framework to ensure consistent conversations about data center water and energy among industry, academia, and policymakers. The goal is to provide objective analysis and a clear language to support better decision-making as data center growth continues to make Texas a significant hub for new projects.