AUSTIN, Texas — Texas lawmakers on Tuesday questioned whether the state has enough information about data centers’ water consumption as they consider possible regulations and infrastructure policies tied to the growing industry.
Members of the Texas House Natural Resources Committee raised concerns during a hearing at the Texas Capitol after learning that only a small percentage of data centers responded to a state survey on water usage.
Temple McKinnon, director of the Water Supply Planning Division at the Texas Water Development Board (TWDB), told lawmakers that the agency surveyed 341 data centers in 2025. With about a week remaining before the response deadline, only 17 percent had submitted data.
State Rep. Brad Buckley, R-Salado, said lawmakers need more complete information to make decisions about water planning and resource management.
The hearing drew enough attendees that officials opened three overflow rooms.
The discussion comes as Texas officials examine the impact of data centers on public resources. Earlier this month, Gov. Greg Abbott expressed interest in reviewing data centers’ water use and ensuring Texans do not bear the cost of infrastructure connected to the facilities.
Data centers, which support cloud computing and artificial intelligence operations, often use water-based cooling systems. Their growing presence has prompted concerns in parts of Central Texas, where water supplies face increasing demand.
Industry representatives told lawmakers they support transparency and responsible resource management.
Dan Diorio, vice president of state policy for the Data Center Coalition, said communities have a right to ask questions about data center developments and that the industry is prepared to address those concerns.
Diorio cited estimates from the Houston Advanced Research Center showing that data centers in Texas use about 25 billion gallons of water annually, representing roughly 0.4 percent of the state’s total water consumption.
Lawmakers from both parties indicated that additional reporting requirements may be necessary to improve data collection.
State Rep. Trent Ashby, R-Lufkin, said lawmakers could consider requiring data centers to provide water-use information when the Legislature returns to session.
Committee Chair Cody Harris said two data center companies declined invitations to testify at Tuesday’s hearing.
The Texas Legislature is scheduled to reconvene in January, when lawmakers are expected to consider proposals related to data center regulation and reporting requirements.