Why Austin Water wants new rules for major water users

Why Austin Water wants new rules for major water users

News ClipAustin American-Statesman·Austin, Travis County, TX·10/7/2026

Austin Water is developing proposed rules for customers using more than 85 million gallons annually, including data centers, amid concerns about water conservation and future development. Austin City Council members have announced an intention to ban large-scale and hyperscale data centers within city limits, while residents are calling for a moratorium and opposing a proposed project at the former 3M campus.

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SoftBank
Gov: Austin Water, Austin City Council, Austin Energy, City of Austin

Austin Water is seeking public input on a regulatory framework for high-impact water users consuming more than 85 million gallons annually. The proposed policy could require future water-conservation plans and additional designations for projects seeking service extensions or site-plan approvals, while encouraging the use of nonpotable water where feasible. Austin Water Director Shay Roalson said the effort is intended to promote conservation rather than drive large users out of the city.

The proposal comes as Austin faces growing opposition to data center development. City Council members have announced plans to ban large-scale and hyperscale data centers within city limits, and protesters at an industry conference called for a moratorium over concerns about water, electricity, land and infrastructure demands. Residents also raised concerns about a planned research and data center operation at the former 3M campus in northwest Austin, a property purchased by an energy and digital infrastructure company tied to SoftBank.