Texas struggles to measure data center water use as operators ignore state survey

As Texas experiences an unprecedented boom in data center development, state leaders are finding it difficult to answer one of the public's biggest questions: How much water are these facilities using?

At a legislative hearing in Austin on Tuesday, lawmakers learned that a recent survey designed to collect information about water consumption and energy demands from data center operators received responses from less than one-third of the companies contacted. The disappointing participation rate has raised concerns about whether state officials have enough reliable information to make informed decisions about future water and infrastructure planning.

The issue comes at a critical moment for Texas. With more than 248 proposed data centers across the state, Texas is rapidly emerging as one of the nation's largest markets for data center development, challenging Virginia for the top spot. The expansion is being driven largely by the growing demand for artificial intelligence, cloud computing, and digital services, all of which require massive computing facilities.

Growing Industry Faces Growing Scrutiny

Data centers require significant amounts of electricity and, in many cases, large volumes of water to cool servers and maintain operating temperatures. As proposals for new facilities spread into communities across Texas, residents and policymakers have increasingly questioned the industry's impact on local water supplies and power infrastructure.

The growing concern has prompted a shift in the state's approach toward data center development. While Texas has historically welcomed large industrial projects, state leaders are now seeking greater oversight and accountability from the rapidly expanding sector.

Gov. Greg Abbott recently directed public utilities to ensure that infrastructure costs associated with serving data centers are not passed on to residential customers. He has also recommended policy changes that would encourage or require operators to adopt more water-efficient cooling technologies, including advanced recirculation systems that reduce overall water consumption.

Meanwhile, some major technology companies have begun promoting more efficient cooling methods. Google recently announced plans to use air-cooled, closed-loop systems in future data centers, reducing dependence on water-intensive cooling operations.

Survey Intended to Improve Transparency

To better understand the relationship between water use and energy demand, the Public Utility Commission of Texas partnered with the Texas Water Development Board to create a voluntary survey targeting data center operators.

The survey requested detailed information about water consumption, cooling technologies, water sources, electricity demand, and whether facilities rely on the state's power grid or generate electricity on-site through facilities such as natural gas power plants.

According to PUC officials, only 28 companies responded, representing 92 facilities in various stages of development.

Lawmakers noted that the number represents only a small portion of the data centers currently operating or planned across Texas, raising questions about whether the results accurately reflect the industry's overall impact.

Several legislators expressed frustration over the limited participation and questioned whether policymakers should rely on such incomplete data when addressing long-term water planning and infrastructure needs.

Concerns were also raised about the lack of detail available from the responses. Lawmakers sought information on how many facilities were traditional data centers versus cryptocurrency mining operations, as well as how many surveys were fully completed. Agency officials indicated they would provide those figures at a later date.

Industry Cites Competitive Concerns

Industry representatives acknowledged the challenge of obtaining participation from operators.

Data center companies often view information about facility operations, energy consumption, and infrastructure planning as proprietary and competitively sensitive. Industry advocates suggested that future surveys could improve participation by aggregating and anonymizing information before it is shared publicly, reducing concerns about confidential business data.

Industry groups have also indicated they are working with state agencies to encourage more operators to participate in future data collection efforts.

A Pattern of Low Participation

The latest survey results mirror challenges Texas officials have faced in previous efforts to collect water-use data from the industry.

Since 2023, the Texas Water Development Board has conducted mandatory water consumption surveys targeting data centers. During that period, the number of surveyed facilities has grown dramatically, from just 22 operations to 341 facilities.

Despite being mandatory, participation rates have remained low. Roughly one-third of surveyed data centers responded in 2024, while response rates dropped to just 17 percent in 2025.

Part of the problem may be the limited consequences for noncompliance. Current penalties amount to a Class C misdemeanor carrying a maximum fine of $500, an amount some lawmakers view as insufficient to encourage participation from large corporations.

The new PUC survey faces an even greater challenge because it is entirely voluntary. Agency officials acknowledged there are currently no incentives or enforcement mechanisms encouraging operators to provide the requested information.

Water Planning Concerns Continue to Grow

The debate highlights a larger challenge facing Texas as it balances economic development with increasingly strained natural resources.

Water planners, legislators, and local communities are attempting to forecast future demand in a state that regularly experiences drought conditions and growing competition for water supplies. Accurate projections become more difficult when data about large industrial users remains incomplete.

Lawmakers emphasized that future decisions involving water allocation, infrastructure investments, and regulatory oversight must be based on reliable and consistent information. Without greater participation from data center operators, officials warn that Texas could be making critical long-term decisions with significant gaps in understanding.

As the state continues its push to become a national leader in artificial intelligence and data infrastructure, the struggle to obtain accurate water-use information may become one of the most important challenges facing policymakers. The outcome could influence not only future data center regulations but also how Texas manages its water resources in the decades ahead.