Data Center Water Use in Texas Remains Unclear Amid Limited Reporting

October 14, 2025 – State officials say Texas still does not have a clear picture of how much water its rapidly growing data center industry is consuming, raising concerns about resource management in one of the nation’s most drought-prone states.

A spokesperson for the Texas Water Development Board (TWDB) confirmed that the state lacks a comprehensive list of data centers, though estimates place the total between 350 and 400 facilities. In 2024, the agency sent about 70 surveys to data centers requesting monthly water-use data and supplier information. Only 18 companies responded.

While data centers are legally required to complete the TWDB survey, failure to do so carries a modest penalty—up to $500 per violation. The agency has not disclosed how many fines, if any, have been issued.

Data centers, essential to powering cloud computing and artificial intelligence, rely heavily on water for cooling. Many companies have adopted closed-loop cooling systems to reduce usage, but others cite proprietary technology and business confidentiality to withhold details about their operations.

With drought conditions frequently affecting Texas, accurate water data is vital for long-term planning and conservation. Without improved reporting, experts warn that state officials could be underestimating industrial demand in areas already facing tight water supplies.