Texas has become a leading global data center destination. Texas currently has 606 data centers, operated by 156 providers, with four main hubs of activity in Dallas–Fort Worth, Austin, Houston, and San Antonio, according to Baxtel. As of November 2025, ERCOT is currently tracking 226 GW of large‑load requests in the interconnection queue, which is up from 63 GW in December 2024, with data centers making up nearly 73% of that total.

A 2026 whitepaper by Houston Advanced Research Center (HARC) estimates that Texas data centers use approximately 9,567 megawatts (MW) of electricity and 25 billion gallons of water through direct and indirect consumption, or 0.4% of total water use. HARC estimates that by 2030, this demand could rise to 0.5–2.7% of Texas’ total annual water use. The HARC report notes that with the Texas Water Development Board already identifying a 4.8‑million‑acre‑foot shortfall in statewide supply, new demand risks compounding pressures on a system that is already resource‑constrained by droughts, population growth, and rising demand.

On the transmission side, Texas has begun laying foundational policy to manage this growth wave. SB 6 establishes clearer standards for large‑load interconnection and curtailment, and the state is also deploying competitive incentives such as the Reliability Standard/RCB‑style programs to bring more firm capacity online.

More detail is available in HARC’s report: Thirsty Data and the Lone Star State: The Impact of Data Center Growth on Texas’ Water Supply