Texas data centers are projected to use 49 billion gallons of water this year, as the state faces a prolonged drought

Two San Antonio data centers — run by Microsoft and the Army Corps — used 463 million gallons of water between 2023 and 2024, even as residents faced strict Stage 3 drought limits allowing lawn watering just once a week.

The spike comes amid a prolonged Texas drought and a broader surge in water demand from data centers statewide, which cool massive server banks for AI and cloud computing. A Houston Advanced Research Center report projects Texas facilities will consume 49 billion gallons in 2025, climbing to nearly 400 billion gallons annually by 2030 — about 6.6% of the state’s total water use.

Large-scale centers can use up to 4.5 million gallons daily, yet unlike electricity, Texas has no laws limiting their water consumption. Most rely on evaporative cooling, which wastes significant amounts to evaporation.

San Antonio Water System officials say conservation rules apply to both residents and businesses, but water use by data centers remains largely unregulated at the state level. The next Texas State Water Plan won’t be completed until 2027.