UT Austin Predicts Data Centers Could Use 9% of Texas Water

The University of Texas at Austin released a white paper warning that data centers could consume between 3% and 9% of Texas' total water by 2040, up from less than 1% today. Developed by the COMPASS research consortium, the study accounts for both on-site cooling and the water required for power production from nuclear, coal, and natural gas sources. This surge in demand is driven by the growth of artificial intelligence and cloud computing, with over 400 data centers currently operating or under construction in the state.

The projected increase coincides with severe regional water shortages. Texas officials estimate the state needs $174 billion over 50 years to avoid a major water crisis, while cities like Corpus Christi have maintained water restrictions for over a year due to drought. In response, Texas lawmakers recently held hearings to examine how the industry impacts the state's water infrastructure and power grid.

Researchers recommend that the industry adopt greater transparency and use alternative sources, such as reclaimed wastewater. They also call for an integrated planning framework to coordinate efforts between state agencies, utilities, and operators to mitigate the impact on the water supply in stressed regions.