Why do AI, data centers use so much water in Texas?

Texas is rapidly becoming a significant hub for artificial intelligence and data center development, but this growth raises concerns about the substantial water consumption required for these operations. The article notes the construction of an Oncor electricity power plant for a new Skybox Power Campus data center in Hutto, Texas, highlighting the infrastructural demands. Data centers' water usage is two-pronged, encompassing both direct and indirect needs. High-performance servers and data centers require significant water for electricity generation and the manufacturing of materials, as detailed in an October 2025 report by the Environmental Law Institute. Historically, data centers consumed 21.2 billion liters of water in 2014, a figure that surged to 66 billion liters by 2023. This increase is partly due to the rising popularity of water evaporation as an efficient cooling method for large-scale operations and high-heat environments, replacing older air conditioning and fan systems to prevent server overheating and mechanical failures.