'Phase one': Austin approves water restrictions for large users like data centers

'Phase one': Austin approves water restrictions for large users like data centers

News ClipAustin American-Statesman·Austin, Travis County, TX·7/23/2026

The Austin City Council has approved new water conservation requirements for large industrial users, including data centers, as part of a broader effort to manage the industry's resource demands. This resolution mandates conservation plans and annual reporting for high-volume water users. The city also aims to advocate for increased local authority over emerging technologies like data centers at the state level.

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Gov: Austin City Council, Kirk Watson, T.C. Broadnax, Mike Siegel, Ryan Alter, Lockhart City Council, Caldwell County, Taylor City Council, Williamson County, San Marcos City Council, Hays County, Henderson County, Hill County, Hood County, Somervell County, Van Zandt County, Texas State Legislature

The Austin City Council has adopted a resolution mandating water conservation plans for large industrial users, specifically targeting data centers. This action, championed by Mayor Kirk Watson and several council members, is considered "phase one" of Austin's strategy to mitigate the environmental impact of the rapidly expanding data center sector in the Austin-San Antonio corridor.

The new measure requires City Manager T.C. Broadnax to establish an application process for entities using over 85 million gallons of water annually. These users must develop conservation strategies, such as integrating reclaimed water systems or employing closed-loop cooling for servers. Additionally, the resolution calls for annual water usage reports from these large customers, enhancing transparency that is currently lacking under state regulations. It also directs an evaluation of the practice of nondisclosure agreements by data center developers, which often shield company identities.

Austin's move aligns with a growing trend among Texas municipalities. Lockhart is developing stricter data center standards due to resident pressure, Taylor is reconsidering its zoning code following a petition for a temporary ban, and San Marcos has already enacted a ban on data centers within its zoning framework.

Further, Austin's legislative agenda for the upcoming state session includes advocating for greater local control over emerging technologies like data centers and autonomous vehicles. The city aims to address the current limitations on local zoning authority over data centers and the legal challenges some cities have faced after implementing bans.