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Texas families and rural communities now face mounting pressure on their water supplies while the data centers powering Big Tech’s AI expansion largely ignore a basic reporting requirement designed to track resource use. State officials revealed at a June 23 House committee hearing that just 17% of 341 operating data centers responded to the Texas Water Development Board survey last year—despite a legal obligation to do so.
The agency lacks teeth to force compliance, leaving policymakers flying blind on the true demands these facilities place on finite water resources.
Rapid Growth Outpaces Planning and Transparency
Data center numbers in Texas surged from 22 in 2023 to 341 in 2024, according to Temple McKinnon, the TWDB’s water supply planning director. An analysis by Cleanview, reported by Just the News, showed 84 operating centers and 140 planned projects as of April 2026. Yet the draft 2027 State Water Plan still excludes demand from these water-intensive operations.
State Rep. Brad Buckley (R-Bell County) called the 17% response rate “terrible,” warning that the missing data leaves lawmakers “blind in terms of building policy.” Lawmakers from both parties expressed deep frustration at crafting a statewide water strategy based on a fraction of the required information.
This comes as University of Texas at Austin polling shows most Texans oppose new data centers in their communities, highlighting a widening rift between industry ambitions and local realities.
Industry Defends Trade-Offs While Stonewalling Data
Dan Diorio, vice president of state policy for the Data Center Coalition, told lawmakers there is no one-size-fits-all cooling solution. He highlighted the inverse relationship: water-heavy methods use less energy, while drier approaches consume more power.
Beau Schilz of Amazon Web Services claimed that banning water for cooling would spike power use by about 14% on average, indirectly driving “hundreds of millions of gallons” of additional water consumption elsewhere through energy production.
Buckley pushed back sharply, stating the industry’s refusal to report usage prevents any meaningful evaluation of those trade-offs. “I can’t think of a better way to get a one-size-fits-all approach than not reporting your water usage,” he said.
The bulk of data center water use goes to evaporative cooling of servers. TWDB data shows Central Texas facilities alone consumed 463 million gallons in 2023-2024—enough to supply thousands of households.
Rural Counties Fight for Local Control and Relief
County leaders from areas bearing the brunt of development pleaded for stronger authority. Hoppy Haden, county judge in Caldwell County, explained that rural counties have “very little statutory ability to control development” and have resorted to costly tax abatements—tens of millions in lost revenue—to negotiate any concessions.
Shawn Nanny, a commissioner from Tom Green County, reported over 500 residents in his precinct joined an anti-data center coalition. “These people are organized and driven,” Nanny said. “I’ve heard it said that data centers are a matter of national security. What about the security of our homes, families, livelihood, and our safety?”
Governor Greg Abbott has called for new oversight, including mandatory water-efficient technologies and annual reporting. Some communities have acted independently, with Hill County imposing a one-year moratorium on new projects.
Lawmakers Signal Push for Enforcement as Public Backlash Grows
More than 100 people signed up to testify at the hearing, underscoring widespread opposition to the unchecked boom. Legislators vowed to pursue stronger enforcement of the existing law before the next session. Chairman Cody Harris (R-Palestine) indicated he may refer noncompliance to the attorney general’s office, stressing that “transparency of utilization of resources shouldn’t be optional.”
A separate voluntary survey by the Public Utilities Commission drew responses from only 28 companies covering 92 facilities. State Rep. Trent Ashby (R-Lufkin) noted the data center issue has eclipsed even property tax relief as voters’ top concern.
Nationally, a Milltown Partners poll found over 90% of data center opponents do not live near one—signaling growing awareness of the massive resource footprint required for AI infrastructure.
Texas lawmakers now face a clear choice: enforce basic accountability on powerful operators or allow Big Tech’s expansion to continue draining public resources with minimal oversight. The human cost—strained water supplies, lost local revenue, and diminished community control—makes transparency non-negotiable for any genuine revival of self-reliant regions.
