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Data centers, drought and development: Inside the Texas water crisis

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Farmers turn to irrigation equipment more and more during drought.
Edwards Aquifer Authority
Farmers turn to irrigation equipment more and more during drought.

Texas is confronting a widening gap between its long-term water supply and the needs of its growing population and economy.

The draft 2027 State Water Plan projects that supplies available during a drought of record will decline from 15.5 million acre-feet annually in 2030 to nearly 14 million by 2080, primarily because of aquifer depletion. Without new supplies or conservation measures, Texas could face shortages of 3.6 million acre-feet in 2030 and 5.8 million by 2080.

Corpus Christi has seen prolonged drought and rising industrial consumption exposed weaknesses in planning based largely on previous droughts. Water-supply projections repeatedly fell as newer droughts proved worse than earlier records.

Artificial-intelligence and cloud-computing data centers create another rapidly expanding demand. A University of Texas study estimates data centers—which use water directly for cooling and indirectly for electricity generation—could account for 3% to 9% of statewide water use by 2040. Researchers caution that the range remains uncertain because cooling technologies and development rates vary.

Texas planners recommend conservation, reuse, desalination, reservoirs and other projects. But implementing the state plan’s proposed projects could cost nearly $174 billion, underscoring the difficult choices ahead.

Guest:

Dylan Baddour is a reporter covering Texas water for Inside Climate News.

"The Source" is a live call-in program airing Mondays through Thursdays from 12-1 p.m.

Leave a message before the program at (210) 615-8982. During the live show, call 833-877-8255 or email thesource@tpr.org.

This interview will be recorded live on Monday, July 20, 2026, at 12:00 p.m.

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David Martin Davies can be reached at dmdavies@tpr.org and on Twitter at @DavidMartinDavi