Data center growth raises concerns over water, power use in Texas

News Clip1:02CBS19·TX·9/10/2026

Concerns are rising in Texas regarding the significant energy and water consumption of data centers, with some facilities using as much water as a town of 50,000 people. Lawmakers and residents are expressing apprehension over water supplies, power grid demands, and the tax incentives provided to developers. Despite these concerns, newer data center facilities are adopting advanced cooling technologies to reduce water and energy use, and the industry highlights the essential role data centers play in daily life.

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A new investigation has revealed growing concerns across Texas regarding the energy and water consumption of data center facilities. Some of the largest data centers can utilize millions of gallons of water daily, equivalent to the consumption of a town with 50,000 residents. This has prompted lawmakers and the public to raise alarms about potential impacts on water supplies, demands on the power grid, and the appropriateness of tax incentives offered to data center developers.

Despite the ongoing debate, industry leaders emphasize the ubiquitous reliance of Texans on data centers for various daily activities. They point out that digital infrastructure provided by data centers is crucial for online education, telehealth services, electronic healthcare records, online purchases, 911 geolocation, and applications used by state and local governments, as well as military and defense operations.

Experts also highlight that not all data centers operate identically. Many newer facilities are implementing advanced cooling technologies designed to recycle water and significantly decrease overall consumption, addressing some of the environmental concerns raised.