• Texas leaders are asking data centers how much water they use. Most aren't responding.

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    Data centers need a lot of water and energy. State officials want to
    know how much, and they hoped a survey sent to data center companies
    would give them the answers.

    But at a legislative hearing Tuesday in Austin, they were told less than
    a third of the companies surveyed responded.

    “Bad data, bad study,” said state Rep. Brad Buckley, R-Salado, a member
    of the House Natural Resources Committee.

    Texans have been thirsty for information on how much water data centers
    in Texas use — and plan to use — as a rush of proposed new projects has
    flooded communities across the state. With more than 248 proposed data
    centers, Texas is challenging Virginia to become the No. 1 market for
    data centers in the U.S.

    Communities and some state officials have aggressively pushed back
    against the growing industry. Their impact is being felt as Texas has
    shifted from aggressively courting data centers to tightening oversight
    — the latest move, by Gov. Greg Abbott, directs public utilities to
    ensure that the infrastructure costs required to serve data centers are
    not passed on to their customers.

    Abbott has also issued recommendations for legislative action, including requiring data centers to use the most efficient, and more expensive,
    water recirculation systems to cool their servers.

    Google recently announced their commitment to use 100% air-cooled,
    closed-loop cooling systems for new data centers. And the industry says
    its cooling technology is improving to require less water.

    The water survey, developed by the Public Utility Commission of Texas in collaboration with the Texas Water Development Board, was a step by
    lawmakers to get more transparency on how data centers work. It’s
    intended to inform future water planning and help policymakers better understand the relationship between water use and energy demand at large industrial facilities.

    It asked operators to provide information about water consumption,
    cooling systems, water sources, electricity demand and whether
    facilities are connected to the state’s electric grid or have their own
    on-site power source such as a gas-fired power plant.

    The agency received responses from only 28 companies representing 92
    facilities at various stages of development, according to Chris Brown, a program manager and economist at the PUC.

    It’s unclear how many surveys the PUC sent out, but lawmakers noted that
    the 92 facilities represent only a small fraction of the state’s
    existing data centers.

    Several legislators questioned whether the survey results would provide
    a reliable foundation for future planning. Buckley criticized the
    response rate, calling the participation level “pretty pathetic” and
    warning against making major policy decisions based on incomplete
    information.

    “That’s just how science works,” Buckley said. “You either have enough
    data or you don’t.”

    Lawmakers repeatedly pressed PUC staff for more details about the
    responses, including how many facilities were traditional data centers
    versus cryptocurrency mining operations and how many surveys were fully completed versus only partially completed. Those figures were not
    available during the hearing. Brown said the agency could get those soon
    to lawmakers.

    “On transparency, this is a fast moving and highly competitive industry. Companies must protect proprietary, confidential, and competitive
    information,” said Dan Diorio, vice president of state policy with the
    industry group Data Center Coalition. He added that he’s working with
    the TWDB and the PUC to see how his coalition can help get more data
    centers to respond to the surveys.

    He suggested that agencies could perhaps “aggregate and anonymize
    information to alleviate any confidentiality concerns moving forward.”

    This isn’t the first time the state has received few responses to a
    survey. The Water Development Board has been sending mandatory water consumption surveys to data centers since 2023. The number of
    individually surveyed data centers has grown from 22 to 341.

    Only one-third of data centers surveyed in 2024 responded and in 2025
    only 17% responded, according to an agency official. The consequences
    for noncompliance are minimal — a Class C misdemeanor with a maximum
    fine of $500.

    Unlike the TWDB surveys, the PUC survey is not mandatory, and agency
    officials said there is no incentive for data center operators to submit
    the requested information.

    State Rep. Jeffrey Barry, R-Pearland, said lawmakers can’t rely on
    “sparse information” to make long-term policy decisions about
    increasingly scarce water resources.

    “We see this pattern of continuing to use either, you know, half-baked information or old information to make futuristic determinations on
    where we’re moving forward, we need to be a little bit more consistent
    in the types of data,” Barry said.

    https://www.texastribune.org/2026/06/23/texas-data-centers-puc-water-surv
    ey/
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