Texas data centers and crypto-mining operations soon will be required to report their water usage to comply with new guidance from state regulators, Austin TV station KXAN reports.
At a Feb. 6 meeting, the Public Utility Commission of Texas (PUC) agreed to send out a survey to such facilities sometime in the spring to determine how much water they’re using, where they’re getting it and what they’re doing with it.
Cryptocurrency facilities and data centers will then have six weeks to respond, KXAN reports. PUC officials say the agency is working with the Texas Water Development Board on questions to include in the survey to gather information on total water usage, tower cooling methods and power sources. The survey will require reporting on a narrow time frame to get an idea of year-round use.
This directive was written into the state budget last year by State Rep. Armando Walle, D-Houston, who called the survey a “softer approach” than passing direct legislation demanding the information, according to KXAN.
“These are new entities that are coming to the state of Texas. We want those jobs. We need those jobs,” Walle told the station. “However, we also have to be very good stewards of our water resources.”
Dan Diorio, vice president for industry lobbying group Data Center Coalition, sent out a statement Wednesday, KXAN reports, stating that data centers “used significantly less water than other essential industries in 2025, including the agriculture, power, food and beverage, and semiconductor sectors.”
“The data center industry continues to invest in water management and deploy water efficiency practices through air-cooled systems, closed-loop water recycling, and dry cooling technologies,” Diorio said. “DCC member companies are also piloting advanced solutions, including AI-driven cooling optimization and on-site water recycling systems, to further reduce consumption and maximize water efficiency.”
Margaret Cook, vice president of water and community resilience at the Houston Advanced Research Center (HARC), released a white paper stating that Texas data centers used an estimated 25 billion gallons of water last year.
Cook told KXAN the PUC survey is a step in the right direction, though she hopes future surveys will include projections on the many data centers still in planning and under construction as Texas experiences the largest growth in the country. Only Virginia has more data centers than the Lone Star State.
“I think that survey is great. I think it’s very needed. I think we needed it a long time ago, but it’s good that we’re doing it now,” Cook added. “If we have the participation that we need from data centers, to answer that survey, to provide the information, then we’ll be able to make much better decisions.”
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