Texas data centers could amount to 9% of the state’s water use by 2040, study finds

Researchers from the University of Texas at Austin's Bureau of Economic Geology are urging transparency in data center water consumption, following a new white paper titled "Water Use Requirements for Data Centers in Texas." The study suggests that data centers, currently using less than 1% of the state's water, could account for 3% to 9% of total water usage by 2040. This increase is driven by the industry's rapid growth, particularly with the rise of AI, and considers both on-site cooling and the water needed for electricity generation from natural gas, coal, or nuclear power plants. Mariam Arzumanyan, a postdoctoral fellow, highlighted the current uncertainty regarding the scale of water needed and the cooling technologies used. The COMPASS research consortium, which developed the study, is now collaborating with industry representatives and state and municipal officials to create a consistent framework for analyzing water issues. The white paper also includes policy recommendations aimed at establishing a vital planning framework for water governance across Texas, which involves various entities from cities to river authorities.