Texas bill targets data center water use reporting

Texas officials told lawmakers at a state Senate hearing on Tuesday that they want to know how much water data centers across the state are using, but there is no master mailing list. Regulators are unsure whether they’re reaching facility operators at the right address, or if they’re being ignored. The lack of a central directory makes it hard to assess water use or enforce any rules.

Data centers have grown faster than any other tech sector in Texas. The state is a hub for cloud services, with major players such as Equinix, Digital Realty, and Amazon Web Services operating dozens of sites. Each facility needs cooling towers, backup generators, and other equipment that can consume thousands of gallons of water per day. In 2023, the Texas Water Commission estimated that data centers used about 3 % of the state’s total water withdrawals, a figure that has risen by roughly 15 % over the past five years. Because water rights and allocations are tightly regulated in Texas, the state needs accurate data to balance supply and demand, especially during droughts.

The Senate hearing was part of a broader effort to address water scarcity. Texas has faced severe droughts in recent years, and lawmakers are concerned that untracked water use could strain already stressed reservoirs. Some data center operators have said they are willing to report their consumption, but without a single list, the state’s agencies cannot even locate every facility. The Texas Comptroller’s office has issued guidance urging operators to voluntarily disclose usage, but compliance is low without a formal requirement.

Next steps are likely to include a new bill that would mandate data center operators to submit annual water‑use reports. The Senate Committee on Natural Resources may hold a follow‑up hearing to draft the legislation. If passed, regulators would probably create a public registry of all data‑center sites, allowing for better monitoring and enforcement. This move would help protect Texas’s water resources and ensure that the tech boom does not come at the expense of the state’s most precious commodity.