Texas Regulators to Require Data Centers, Crypto Miners to Report Water Use
AUSTIN, Texas — Texas utility regulators will begin requiring data centers and cryptocurrency mining operations to report their water usage, as state leaders move to better understand how fast-growing technology industries are affecting Texas’ already strained water resources.
The Public Utility Commission of Texas (PUC) plans to ask qualifying facilities statewide to begin sharing water-use data within a defined reporting timeframe, marking one of the first coordinated efforts to track how much water large-scale computing operations consume.
Data centers and crypto-mining facilities have expanded rapidly across Texas in recent years, drawn by relatively low energy costs and a business-friendly regulatory environment. While much attention has focused on their electricity consumption, water use — needed primarily for cooling systems — has remained largely unmeasured at the state level.
Regulators say collecting consistent data will help inform long-term water planning, infrastructure investments, and drought preparedness.
“Texas is experiencing unprecedented growth, and we need a clearer picture of where and how water is being used,” a PUC official said. “This reporting will give policymakers better tools to protect water supplies while supporting economic development.”
The new reporting requirement is expected to apply to large-scale facilities that exceed certain capacity thresholds. Officials emphasized that the measure is intended to improve transparency, not restrict operations.
Water experts have warned that clusters of data centers in drought-prone regions could place additional stress on local water systems, particularly during extended dry periods.
Industry groups say many companies already track internal water usage and are prepared to comply, but they want assurances that proprietary information will be protected.
State officials say the data will be used to support broader efforts to ensure Texas has sufficient water supplies for communities, agriculture, and industry as population and economic growth continue.
