Texas lawmakers seek more transparency from data centers amid concerns over water and power demand
Texas lawmakers are seeking more transparency from data center companies regarding their water and electricity usage, following concerns raised during a recent hearing. The Texas House Natural Resources Committee discussed the industry's rapid expansion and its impact on the state's resources, with a low rate of company participation in water-use surveys. The issue is expected to be a major topic for the upcoming 2027 legislative session as new regulations are considered.
Texas lawmakers are pushing for increased transparency from technology companies operating data centers in the state, citing concerns over the industry's rapid expansion and its impact on Texas' water supply and electrical grid. During a nearly 10-hour hearing before the Texas House Natural Resources Committee, legislators questioned the adequacy of information provided by companies regarding their electricity and water consumption.
State officials reported that only about 17% of data centers required to submit a state water-use survey have complied, leaving agencies without reliable data for future resource planning. Commissioner Jason Grant of Navarro County highlighted the challenges faced by local governments, stating that data center projects often advance with minimal notification to counties, which lack the tools to manage their impact on infrastructure and resources.
These concerns are expected to be a significant focus for the 2027 legislative session, as lawmakers aim to balance economic development with the protection of natural resources and grid reliability. Additional hearings on water policy and natural resource planning are anticipated before the legislature reconvenes in Austin next year, indicating a strong likelihood of new regulatory proposals.