2027 State Water Plan Receives Initial Approval Amid Concern Over Missing Data Center Analysis


Texas Water Development Board gives State Water Plan initial approval, but Texans say that it is missing analysis of water usage by data centers. 


Texas Water Development Board

The Texas Water Development Board gave initial approval to the 2027 State Water Plan. Critics say it currently leaves out analysis of water usage by data centers.

The adopted water plan, or Phase I, outlines the proposed actions Texas may take in the next 50 years to meet state water needs. It has a cost estimate of $174 billion, more than double the last plan approved in 2022.

Water board members defended the cost rise by citing inflation, updated project costs, extension of the planning horizon, and “lingering supply chain impacts following the COVID-19 pandemic.”

As previously reported by Texas Scorecard, despite the cost increase, the mix of proposed projects remains similar to previous state water plans. Most of the spending would occur at the local level through a mix of “bonds, utility revenues, state financial assistance programs, and, in some cases, federal funds.”

Included in the water plan are targeted projects focusing on drought preparedness and management.

However, several Texans have voiced concerns that the water plan is missing a “key issue” in future planning—analysis of water usage by data centers.

According to KLBK, 28 public comments were submitted regarding the water plan’s lack of coverage of the topic.

WaterWorld reports that the plan acknowledges “growing interest in water demand from data centers and artificial intelligence facilities” and that the TWDB tracks water usage from these facilities, but notes that “limited historical data prevented adjustments to long-term demand projections in this planning cycle.”

The water board plans to expand the data collection to improve projections for future water plans.

Later this year, the water board is expected to adopt a final state water plan, called Phase II, that is projected to “include additional analysis and value-added content consistent with prior state water plans.”

The state water plan does not automatically fund any of the proposed projects. Related entities must still initiate the selection, financing, designing, and building of projects.