Texas AI Data Center Boom Outpaces Water Infrastructure as Consumption Could Reach 161 Billion Gallons by 2030

Summary

Texas is experiencing an unprecedented AI infrastructure boom that is straining the state's water resources, according to a new report from the Houston Advanced Research Center (HARC). The state currently hosts over 400 data centers operating or under construction, with facilities collectively consuming approximately 25 billion gallons of water annually. That figure is projected to potentially reach between 29 and 161 billion gallons by 2030, though the wide range reflects significant gaps in available data. The largest project underway is Fermi America's Project Matador in Amarillo—officially named the President Donald J. Trump Advanced Energy and Intelligence Campus—a 5,800-acre complex that will be nearly seven times the size of Central Park. Cofounded by former Texas Governor Rick Perry, the facility will include 18 million square feet of data centers, four 1-gigawatt nuclear reactors, and a dedicated natural gas plant.

The core issue is that Texas does not require data center operators to disclose projected or actual water consumption, making it nearly impossible for state planners to assess industrial water needs or account for this demand in regional water planning. Data centers rely heavily on potable freshwater for evaporative cooling systems, where water absorbs heat and is either lost as vapor or becomes too mineralized for reuse. A small-to-mid-sized facility can consume about 300,000 gallons of municipal water daily, while mega-campuses like Project Matador and OpenAI's Project Stargate One in Abilene could require millions of gallons per day. This surge in consumption comes as Texas simultaneously acknowledges water scarcity challenges, with the state already facing a 4.8-million-acre-foot shortage according to the Texas Water Development Board.

The timing of this infrastructure push coincides with the White House's July 2025 AI Action Plan, which calls for streamlined environmental permitting to accelerate AI development. Critics argue that cornerstone environmental protections are being treated as obstacles in the race for technological dominance. Margaret Cook, Vice President of Water and Community Resilience at HARC, expressed concern that the explosive growth in data centers is happening without adequate forecasting tools or state-level planning mechanisms. The lack of transparency and regulatory oversight means water-stressed municipalities cannot properly assess the impact of these facilities on local supplies, even as voters approved a multibillion-dollar, 20-year water program in 2024 to address the state's water challenges.

• The state already faces a 4.8-million-acre-foot water shortage, and data center demand is not included in the State Water Plan
• The White House AI Action Plan promotes streamlined environmental permitting, potentially weakening water resource protections

Editorial Opinion

This report exposes a dangerous regulatory gap at the intersection of technological ambition and resource management. While AI infrastructure development races forward with bipartisan political backing and federal support for expedited permitting, basic environmental accounting mechanisms are absent. The fact that Texas—a state already facing significant water scarcity—allows industrial facilities to consume millions of gallons daily without disclosure requirements represents a failure of governance that will have long-term consequences for communities competing for the same finite water resources.