Texas water plan ignores data center surge
Texas's draft 2027 state water plan fails to address the significant water demands of the booming data center industry, primarily due to its reliance on historical data. State officials acknowledge the growing concern over water scarcity as data centers expand, prompting discussions and proposed legislation for future water management strategies. Other states like Florida and South Carolina are already implementing or considering rules regarding data center water use.
Texas's draft 2027 state water plan currently omits any mention of the substantial water usage by data centers, despite a projected surge in these facilities across the state. This oversight stems from the Texas Water Development Board's reliance on historical data for planning, which doesn't capture the rapid growth of the data center industry. Officials, including Thomas Gleeson, chair of the Public Utility Commission of Texas, have expressed concern about the industry's water demands in a state prone to drought, highlighting that water, alongside electricity, is becoming a critical issue.
While the current plan is open for public comments until May 29, and a vote is expected in July, changes specifically addressing data centers are unlikely until the next draft in five years. Nonetheless, state agencies are beginning to seek information; the Texas PUC has launched a voluntary survey for data center developers on their water plans, and Lt. Gov. Dan Patrick has tasked the Texas Senate with studying water demands from "energy-intensive technologies." State Sen. Charles Perry plans to propose guardrail bills on data center water usage in the 2027 legislative session.
Texas's situation is mirrored by actions in other states; South Carolina lawmakers are considering a bill to mandate studies on proposed data centers' water consumption, and Florida Gov. Ron DeSantis recently signed legislation prohibiting water management districts from permitting large-scale data centers if their water use would harm local resources. Public opinion, as indicated by a recent Gallup poll, shows significant opposition to data center construction, with water usage being a top concern.
Industry representatives, like Dan Diorio of the Data Center Coalition, argue that data centers are efficient water users compared to other industrial sectors and are increasingly adopting water-saving cooling technologies like closed-loop systems. However, environmental groups like the Sierra Club's Lone Star Chapter contend that the largest water impact comes indirectly from the massive electricity demands of data centers, which necessitate water-intensive power generation, especially from coal and natural gas plants. Conversely, some developers are exploring solutions like desalination plants in water-scarce regions of Texas, potentially offering new water sources for local communities.