AI's Hidden Water Crisis,Big Tech's Massive Data Centers Threaten Texas Water Supplies

Stargate Project and Other Facilities Could Consume 399 Billion Gallons by 2030, Experts Warn

As artificial intelligence transforms the digital landscape, Texas faces an emerging crisis that could rival its energy struggles: water scarcity driven by AI data centers' massive consumption needs. The state's latest mega-project, the $500 billion Stargate development outside Abilene, represents just the beginning of what experts warn could become an unsustainable drain on Texas water resources, with projected consumption reaching 399 billion gallons annually by 2030—equivalent to 7% of the state's total water usage.

Construction has already begun on Project Stargate One, which will sprawl across 940 acres when complete, making it larger than New York's Central Park and consuming up to 1.2 gigawatts of power—enough electricity to supply a million homes.

The Hidden Cost of Every AI Interaction

Behind every ChatGPT conversation lies an often-overlooked environmental impact that researchers are only beginning to quantify. Yi Ding, a professor at Purdue University's School of Electrical and Computer Engineering who specializes in sustainable AI development, has calculated that asking ChatGPT 10 to 50 questions consumes approximately 50 milliliters of water—about a quarter cup per interaction.

"All those cups of water quickly add up as more and more people are using AI," Ding explained to Texas Public Radio. Her recent research, published in HotCarbon 2025 under the title "Not All Water Consumption Is Equal: A Water Stress Weighted Metric for Sustainable Computing," reveals a troubling pattern: since 2022, two-thirds of new U.S. data centers have been located in water-scarce regions, including Texas and Arizona.

"Texas is actually a relatively high water stress region. It's very intensive because people also need water to live" — Yi Ding, Purdue University professor

The mathematics of AI water consumption are staggering. A typical midsized data center consumes 300,000 gallons daily—roughly equivalent to the water usage of 1,000 homes. But Texas is not building typical data centers.

A Looming Water Emergency

According to a policy brief from the Houston Advanced Research Center and University of Houston Energy, data centers across Texas will consume 46 billion gallons of water in 2025 alone. By 2030, that figure could balloon to 399 billion gallons, representing approximately 7% of Texas's total water consumption.

These projections alarm water policy experts who note that Texas already struggles with water availability. Robert Mace, executive director of The Meadows Center for Water and the Environment in San Marcos, told Texas Public Radio that the scale of consumption is both unprecedented and potentially unsustainable.

"That's a lot of water, and quite frankly, it's a bit alarming because we are already a state struggling with our water supplies," Mace said. He emphasized that water availability will become the critical constraint for data center operations, potentially more limiting than even the electrical power supply.

The Physics of Digital Infrastructure

The massive water requirements stem from data centers' fundamental operational challenge: heat management. AI processing generates enormous amounts of heat through thousands of servers running continuously at maximum capacity. Without adequate cooling, these systems become inefficient or completely inoperable.

"Heat is the enemy of data operations, reducing their efficiency or even making them inoperable," Mace explained. "You've got to have the water to have water for cooling."

Traditional data center cooling relies on evaporative systems that consume water continuously, much like a massive air conditioning unit that never shuts off. The water evaporates to remove heat, requiring constant replenishment from local water supplies.

"A lot of these data centers are going to find out that it's going to be hard to get that water and it may simply not be available" — Robert Mace, executive director at The Meadows Center for Water and the Environment

Technology Solutions Exist, But Aren't Mandatory

Water conservation technology offers potential relief through closed-loop cooling systems that capture and reuse water vapor instead of releasing it into the atmosphere. These systems require substantially less water than traditional open-loop cooling, though they still need continuous water input.

Caruso Energy, the company building the Abilene Stargate facility, has committed to using closed-loop systems according to documents provided to Texas Public Radio. However, this choice remains voluntary rather than required by state regulation.

"That'll be far more water efficient. That does still require water, but it's substantially less water than an open-loop cooling system," Mace explained. Despite the availability of water-saving technology, not all data center developers are making similar commitments.

Regulatory Gaps Leave Water Planning Behind

Julie Nahrgang, executive director of the Water Environment Association of Texas, argues that current state planning fails to account for the dramatic increase in data center water consumption. She warns that without immediate policy intervention, Texas could face water shortages that threaten both technological development and basic human needs.

"If Texas is looking at this as a business growth opportunity and a chance to lead the nation in this innovative growth place, then water should be one of the paramount considerations," Nahrgang told Texas Public Radio.

She advocates for immediate regulatory action requiring data centers to implement water conservation strategies. "Texas should consider incentivizing, requiring, or requiring data centers to look at strategies to reduce water demands," she said.

"All of these compounding pressures on our water supply mean that better planning is needed before we find ourselves in a water supply deficit that we can't innovate out of" — Julie Nahrgang, Water Environment Association of Texas

Nahrgang emphasized that the current Texas water plan does not adequately account for Big Tech's expanding water needs, creating a dangerous gap between projected supply and actual demand.

Even Bigger Projects on the Horizon

The water challenge will intensify dramatically as even larger facilities come online. Near Amarillo, Texas Tech University and former Energy Secretary and Governor Rick Perry are developing an AI data center five times larger than the Abilene Stargate facility.

The massive project, expected to be named the "Donald J. Trump Advanced Energy and Intelligence Campus," will be powered partly by nuclear energy but has not disclosed its water consumption requirements. Given that it will be five times larger than Stargate, which already represents the world's largest AI data center, the water demands could be unprecedented.

The location choice is particularly concerning to water experts, as the Amarillo area represents some of Texas's driest territory, where water resources are already under severe stress from agricultural demands and periodic drought conditions.

National Context of Water Scarcity

Texas's situation reflects a broader national challenge as AI development accelerates across water-stressed regions. Ding's research shows that tech companies are consistently choosing locations with existing water supply challenges, potentially because these areas often offer other advantages such as lower costs, favorable regulations, or proximity to renewable energy sources.

"Open AI and some bitcoin mining companies are all investing heavily in Texas to build data centers," Ding noted. The concentration of water-intensive technology infrastructure in already stressed regions creates compounding risks for both technological operations and local communities.

Economic vs. Environmental Trade-offs

The data center boom represents a significant economic opportunity for Texas, bringing high-paying jobs, substantial tax revenue, and positioning the state as a leader in AI development. However, experts argue that short-term economic benefits must be balanced against long-term environmental sustainability.

Nahrgang's warning about Texas's legendary economic growth carries particular weight: "There's no Texas miracle without available water." Her statement reflects the reality that the state's historic economic expansion has always depended on adequate water resources for both industrial development and population growth.

The challenge facing policymakers is whether to prioritize immediate economic gains from data center development or implement conservation requirements that might slow growth but ensure long-term sustainability.

Critical Decisions Pending

As construction continues on existing projects and new facilities advance through planning stages, Texas faces critical decisions about water policy and technology regulation. The choices made in the coming months will likely determine whether the state can successfully balance AI development with water conservation.

Water experts emphasize that conservation technology exists and can be implemented, but only if required by regulation or incentivized through policy. Without such measures, market forces alone appear unlikely to drive adequate water conservation, given that water costs typically represent a small fraction of data center operating expenses.

The ultimate test will be whether Texas can maintain its position as a technology leader while protecting the water resources that both its growing population and expanding economy require. As Nahrgang warned, the state must begin "better planning" immediately to avoid finding itself "in a water supply deficit that we can't innovate out of." The stakes are enormous: not just for AI development, but for the long-term viability of communities across drought-prone Texas.