A recent investigation reveals that Texas data centers, led by Microsoft's sprawling Stargate campus in Abilene, consumed a staggering 463 million gallons of water in 2023 and 2024 alone. Projections suggest this number could skyrocket to 400 billion gallons by 2030, accounting for nearly 7% of the state's total water consumption. Unchecked expansion is threatening Texas's already strained water resources, with much of the cooling water evaporating into thin air, never to be recycled.

The hidden cost of AI's water hunger

Data centers, the backbone of artificial intelligence and cloud computing, require vast amounts of water to cool their overheating servers. Unlike residential water use, which can be conserved and recycled, much of the water used for industrial cooling is lost to evaporation. Robert Mace, executive director of The Meadows Center for Water and the Environment at Texas State University, emphasized the severity of the issue: "People don't think of data centers as industrial water users, but they are. Once that water evaporates, it's just gone."

The numbers are staggering. According to the Texas Water Development Board, data centers are projected to consume 49 billion gallons in 2025—a figure that could balloon to 399 billion gallons by 2030. For context, that's enough water to supply millions of households annually. Meanwhile, cities like San Antonio enforce Stage 3 water restrictions, limiting lawn watering to once a week and imposing surcharges on excessive residential use. The contradiction is impossible to ignore: while everyday Texans are told to cut back, corporate giants face no such limits.

Microsoft, a major player in Texas's AI boom, has pledged to become "water positive" by 2030, meaning it aims to replenish more water than it consumes. The company points to water restoration projects and the use of recycled water where possible. But critics argue these efforts often occur far from the communities most affected by water shortages.

Transparency is another issue. Many water utilities only learn about new data center projects after construction begins, and some companies operate under shell entities or code names, avoiding public scrutiny.

A looming crisis for Texas's water future

The rapid growth of AI infrastructure is outpacing the state's ability to regulate it. While Texas lawmakers passed bipartisan legislation (Senate Bill 6) to manage energy demands from data centers during grid emergencies, no equivalent measures exist for water use.