Data centers add new strain to Texas water supplies

A new study, "Thirsty Data and the Lone Star State: The Impact of Data Center Growth on Texas’ Water Supply," by The Houston Advanced Research Center (HARC), reveals that the rapid expansion of data centers in Texas is creating significant and largely unaccounted-for pressure on the state's already strained water resources. Texas, which faces water scarcity due to drought, population growth, and industrial demand, could see data center water consumption rise dramatically from an estimated 25 billion gallons annually to between 29 billion and 161 billion gallons by 2030. The report, authored in part by Dr. Erin Kinney, HARC’s Manager of Coastal Resilience and Communities, identifies that data centers are major water users directly for cooling and indirectly through the electricity they consume. Carlos Rubinstein, former commissioner of the Texas Commission on Environmental Quality (TCEQ) and Chairman of the Texas Water Foundation, emphasized the need for stronger oversight. The study criticizes the lack of detailed public information on water and electricity consumption by large users like data centers, noting that the State Water Plan currently omits data center demand projections despite an anticipated statewide water shortage. While proponents argue that data centers bring jobs and tax revenue, HARC contends that these benefits should not come without robust oversight. The report recommends implementing requirements for better reporting of water and electricity usage, integrating large demand users into long-term water planning, reforming groundwater rules, and incentivizing companies to adopt water conservation technologies such as dry cooling and water reuse systems. The overarching message is that effective management of Texas' water supply necessitates accurate measurement and informed policy in the face of burgeoning data center growth.