A new study from the University of Texas at Austin warns that the rapid expansion of data centers across the state could significantly increase pressure on Texas’ already stressed water system in the coming decades.
The report estimates that data centers could account for between 3% and 9% of Texas’ total water use by 2040, a sharp rise from less than 1% today. The findings come amid a construction surge driven by artificial intelligence and cloud computing demand, with more than 400 facilities already operating or being built statewide.
Researchers at UT Austin’s Jackson School of Geosciences and the Bureau of Economic Geology noted that uncertainty remains around the industry’s long-term water footprint. Water use varies widely depending on cooling systems and energy sources used by individual facilities.
“There’s a lot of uncertainty surrounding the water use for data centers,” said Mariam Arzumanyan, a fellow at the Bureau of Economic Geology.
Data centers consume large volumes of water primarily for cooling servers, while also relying heavily on electricity generation, which can indirectly increase water demand.
Growing scrutiny over infrastructure impact
The study adds to growing concerns among lawmakers and environmental advocates about the environmental cost of Texas’ expanding tech infrastructure. In recent years, attention has focused on both the industry’s electricity consumption and its strain on water resources.
Texas is already facing worsening water challenges. A separate state analysis projects that at least $174 billion will be needed over the next 50 years to prevent a major water crisis, as drought conditions, population growth, and industrial demand continue to rise.
In cities such as Corpus Christi, prolonged drought has already forced water restrictions as reservoir levels decline.
Lawmakers weigh infrastructure readiness
Texas lawmakers recently held hearings examining how the expansion of data centers could affect the state’s power grid and water systems, particularly as artificial intelligence accelerates industry growth. Questions have been raised about whether current infrastructure and regulations can keep pace.
Researchers say state leaders and private companies may need to adopt additional water-saving strategies and technologies to reduce long-term pressure on resources as the sector continues to expand.