TEXAS DATA CENTER WATER

Texas data centers and water: how much they use, where it comes from, and the risks

How much water Texas data centers use, which aquifers and utilities supply them, how groundwater rules and drought shape the risk, and what to check before siting a data center in Texas.

By Argos Tellus · Updated October 2, 2026

KEY TAKEAWAYS

The Houston Advanced Research Center (HARC) estimated in January 2026 that existing Texas data centers consume about 25 billion gallons of water a year, counting both on-site cooling and the water used to generate their electricity.
HARC projects that could rise to 29–161 billion gallons a year by 2030 — up to about 2.7% of total Texas water use — depending on how many facilities are built and how they are cooled.
Texas does not require data center operators to disclose projected or actual water use, which HARC describes as a blind spot in state water planning.
Groundwater supplies more than half of the water used in Texas, and most of it is governed locally by groundwater conservation districts that can cap production.
Texas voters approved Proposition 4 in November 2025, dedicating $1 billion a year for 20 years, starting in 2027, to the Texas Water Fund — a sign of how tight long-term supply is.

Why data center water use is a Texas question

Texas has become one of the largest data center markets in the United States, drawn by available land, its own power grid (ERCOT) and fast-growing metro areas. Many of the new campuses are sized for AI workloads, which concentrate heat and, with evaporative cooling, water demand (see how much water AI data centers use).

The same state faces recurring drought and long-term supply gaps. Texas’s state water plans project large shortages if a drought like the 1950s drought of record returns, and several major aquifers are in long-term decline (see Texas groundwater).

How much water do Texas data centers use?

Because Texas does not require reporting, estimates are modeled rather than measured. HARC’s January 2026 white paper, “Thirsty Data and the Lone Star State,” estimated current Texas data center water consumption at about 25 billion gallons a year — including water evaporated for on-site cooling and water consumed at power plants generating the electricity those facilities use.

For 2030, HARC projected a range of about 29 to 161 billion gallons a year, or up to about 2.7% of the state’s total water use. The wide range reflects real uncertainty: how many announced projects are built, how much capacity is AI, and whether operators choose evaporative or closed-loop cooling designs.

Estimate (HARC, Jan 2026)	Water use
Existing Texas data centers (direct + power generation)	≈25 billion gal/yr
Projected 2030 range	≈29–161 billion gal/yr
Projected 2030 upper bound, share of Texas water use	Up to ≈2.7%

Where Texas data centers get their water

Most facilities buy water from a city or utility; some drill their own wells; a growing number use reclaimed wastewater for cooling. Which source a site depends on — and what lies behind that source — differs sharply by region:

Dallas–Fort Worth — largely surface-water reservoirs operated by regional water providers; drought reduces reservoir yield and can trigger use restrictions.
Austin–San Antonio corridor — mixed surface water and groundwater, including the Edwards and Trinity aquifers. Edwards pumping is regulated by the Edwards Aquifer Authority, which cuts permitted withdrawals in stages as aquifer levels fall during drought (see Edwards Aquifer drought stages).
Houston and the Gulf Coast — the Gulf Coast aquifer, where subsidence districts have required a shift from groundwater to surface water to stop land subsidence.
West Texas and the Panhandle — the Ogallala and other High Plains and Permian Basin aquifers, many in long-term decline, plus brackish groundwater that requires treatment (see Ogallala aquifer depletion).

The groundwater rules that shape the risk

Texas follows the rule of capture, but most of the state is covered by groundwater conservation districts that permit high-capacity wells, set spacing and production limits, and curtail pumping in drought. District desired future conditions effectively cap how much additional groundwater an aquifer can supply. A site that looks water-rich on a map can still be limited by its district’s rules — or by competition from existing permit holders.

Large wellfields also lower water levels around them. A data center pumping millions of gallons a day can create a cone of depression that affects neighboring domestic and irrigation wells, which is where community opposition and legal risk usually start.

What to check before siting a data center in Texas

The data center groundwater due-diligence checklist walks through each step in detail.

Source of supply — utility contract, on-site groundwater, reclaimed water, or a combination — and that source’s drought contingency plan.
Aquifer condition — saturated thickness, water-level trend and water quality beneath the site if wells are involved.
District rules — permits, production limits, spacing and drought stages for the governing groundwater conservation district or aquifer authority.
Interference — modeled drawdown at neighboring wells at design and peak pumping rates.
Design-life projection — expected water availability across 20–30 years under normal and drought conditions, including future regional demand.

Frequently asked questions

How much water do Texas data centers use?

HARC estimated in January 2026 that existing Texas data centers consume about 25 billion gallons of water a year, including on-site cooling and water used to generate their electricity, and projected 29–161 billion gallons a year by 2030.

Do Texas data centers have to report their water use?

No. Texas does not require data center operators to disclose projected or actual water use, which is why statewide figures are modeled estimates.

Can a data center drill its own water wells in Texas?

Yes, subject to the rules of the local groundwater conservation district or aquifer authority, which can require permits, limit production, set well spacing and curtail pumping during drought.

What is Texas Proposition 4?

A constitutional amendment approved by Texas voters in November 2025 that dedicates $1 billion a year in state sales tax revenue to the Texas Water Fund for 20 years, starting in 2027, for water supply, wastewater, flood and conservation infrastructure.

Which Texas aquifers matter most for data center siting?

It depends on the region: the Edwards and Trinity aquifers in Central Texas, the Gulf Coast aquifer around Houston, and the Ogallala and other High Plains and Permian aquifers in West Texas and the Panhandle. Each has different recharge, storage, water quality and regulation.

HOW ARGOS HELPS

Phreatic — groundwater availability

Distinct models for the Edwards, Ogallala, Gulf Coast and Dockum aquifers; drawdown, interference and sustainable yield for a site.

CARI — aquifer reasoning agent

Trained on Texas well inventories, drawdown histories and TCEQ and GCD case files.

SOURCES

Figures are taken from the primary sources above and dated as of the update shown. Concentrations are expressed in mg/L. Spot an error? Email support@argostellus.com.

RELATED GUIDES

Need a site-specific answer?

Argos models groundwater availability, drawdown and contamination for individual sites and portfolios.

CONTACT ARGOS