Weekly Wastewater News: Texas – May 19, 2026

Texas Data Centers Projected to Significantly Increase Water Demand by 2040

A comprehensive new report from the University of Texas at Austin is raising important questions about the future of water resource allocation in Texas as the state’s data center industry continues its rapid expansion. According to the research findings, data centers operating across Texas could account for between 3% and 9% of the state’s total water use by 2040, representing a dramatic increase from the current level of less than 1%.

The projected surge in water consumption reflects the explosive growth of data infrastructure driven by artificial intelligence, cloud computing, and digital services. Data centers require substantial volumes of water primarily for cooling systems that prevent servers and equipment from overheating during continuous operation. As Texas positions itself as a national hub for technology and data services, the water implications of this economic development are becoming increasingly significant for state and regional water planners.

The University of Texas researchers emphasize three key recommendations to address this emerging challenge. First, they call for better transparency regarding data center water usage, enabling more accurate forecasting and planning. Second, the report advocates for improved coordination between data center operators, water utilities, and state water planning authorities to ensure that growth does not compromise water availability for other essential uses. Third, and perhaps most critically, the researchers recommend greater utilization of reclaimed wastewater for data center cooling operations, which could substantially reduce pressure on potable water supplies and freshwater sources.

This report arrives at a crucial moment for Texas water planning, as the state already faces ongoing challenges related to drought resilience, population growth, and competing demands from agriculture, municipalities, and industry. Water and wastewater professionals across Texas will need to incorporate these projections into long-term infrastructure planning and consider how alternative water sources, including reclaimed water systems, can be expanded to meet the diverse needs of a growing and evolving economy while protecting the state’s precious water resources for all users.

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