Report: Texas data centers may increase pressure on the state's strained water supplies

A new report from the University of Texas at Austin's Jackson School of Geosciences reveals that Texas' rapidly expanding data center industry could significantly strain the state's water supply. The research estimates that data centers, currently using less than 1% of Texas water, could consume between 3% and 9% of the state's total water by 2040. This growth is largely fueled by the demands of artificial intelligence and cloud computing, with over 400 data centers already operational or under construction across Texas. Mariam Arzumanyan, a fellow at UT Austin's Bureau of Economic Geology, noted the uncertainty in precise water usage figures due to varied cooling systems and energy sources among facilities. Data centers require substantial water for server cooling and indirectly for electricity generation. Concerns over rising electricity demand, local water strain, and the long-term environmental impact of these large AI-focused facilities are growing among lawmakers and environmental advocates. The findings are particularly pertinent given Texas' worsening water shortages, which necessitate an estimated $174 billion investment over the next 50 years to prevent a major water crisis, as drought and industrial demand outpace existing supplies. For example, Corpus Christi has faced water restrictions for over a year due to drought. Texas lawmakers recently convened a hearing to investigate how the rapid expansion of data centers might affect the state's power grid and water resources, questioning the preparedness of current infrastructure and regulations. Researchers at UT Austin emphasize the need for state leaders and data center companies to collaborate on strategies to mitigate pressure on Texas' water supply.