Austin leaders eye water conservation measures for major projects as data center growth raises resource concerns

Austin City Council has approved a resolution spearheaded by council member Mike Siegel, mandating long-range water use and conservation plans for facilities in the city that consume large amounts of water. This measure specifically targets high-volume customers like data centers, with Austin leaders also considering limits or an outright ban on new large data center projects, alongside future policies addressing land use, noise regulations, and energy consumption.

Siegel emphasized that Austin is scrutinizing water usage, requiring high-volume users not only to pay their fair share but also to implement significant conservation efforts, including the potential use of reclaimed water. The resolution emerged from concerns over top Austin Water customers, such as Samsung Austin Semiconductor, NXP USA, and Tesla, consuming billions of gallons annually, and an Amazon robotics project also noted for its potential resource demands. These facilities collectively represented 6% of the utility's water usage last year.

This local initiative aligns with broader statewide concerns in Texas, where data centers consumed an estimated 25 billion gallons of water last year, with projections indicating a significant increase by 2030. State officials, including Representative Trent Ashby, have voiced concerns over the lack of comprehensive data on data center water use, hindering the Texas Water Development Board's ability to forecast future water demands. Texas legislators are also examining data centers' impact on electricity costs and their utilization of state tax incentives.