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Texas Lawmakers Seek More Transparency From Data Centers Amid Concerns over Water and Power Demand

Lawmakers say limited company responses and new surveys leave Texas without key data on water use and grid demand as 248 more projects are planned.

  • During a nearly 10-hour hearing on Wednesday, June 23, the Texas House Natural Resources Committee examined how increasing data center demand affects natural resources, energy infrastructure, and local communities.
  • Rapid industry expansion prompted the scrutiny, with 335 existing data centers and at least 248 more planned across Texas as lawmakers seek information to regulate the sector's impact on water and electrical grids.
  • State officials reported only about 17% of facilities submitted required water-use data, prompting State Rep. Brad Buckley, R-Salado, to call the response rate "terrible," while Committee Chairman Rep. Cody Harris noted companies including Diode Ventures and Calypso declined to testify.
  • Harris signaled lawmakers will strengthen disclosure and enforcement requirements during the 2027 legislative session, asserting that "transparency of utilization of resources shouldn't be optional" for data center operators.
  • Projections show Texas faces significant water shortages, yet lawmakers lack reliable consumption data to accurately determine how data center expansion impacts communities already confronting limited supplies amid drought and aquifer depletion.
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Community Impact broke the news in Pflugerville, United States on Thursday, June 25, 2026.
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