Water disposal, reuse economics are converging
Water disposal and beneficial reuse economics are converging, offering new opportunities for managing increased water production in the Permian Basin. Data centers entering the region present a potential for large-scale contracts for treated produced water, especially for cooling systems. A regulatory framework is needed to support this industry integration.
Robert Crain, executive vice president at Texas Pacific Water Resources, addressed the Produced Water Society’s Permian Basin Conference, highlighting the increasing challenge of managing water produced alongside oil and natural gas. He noted that while injection into disposal wells remains economically preferable, the cost-effectiveness of beneficial reuse is converging.
Crain identified the growing presence of data centers in the Permian Basin as a significant opportunity. These facilities could provide large-scale contracts for treated produced water, aiding in the expansion of desalination and treatment plant capacities. He detailed three phases of water demand for data centers: construction, commissioning (filling and testing systems), and ongoing operations.
He explained that data center water demand varies based on cooling technology, with minimal loss in closed-loop systems once charged. Crain proposed a model for colocation where desalination facilities could utilize auxiliary power and waste heat from data centers to treat produced water. This treated water could then support evaporative cooling systems for data center chips. Texas Pacific Water Resources' new desalination and research facility in Orla was offered as a potential framework for this colocation, emphasizing the need for a supportive regulatory framework for the industry.