GRIDLEADS

GridLeads analysis · October 2026

Texas data centers, water, and the power behind them

On 24 September 2026 Texas Attorney General Ken Paxton announced an investigation into data center developments that had not answered the state's water use survey, and named 18 counties1. Of the 329 data centers surveyed last year, only about 30% answered2.

We looked at every data center GridLeads tracks in those counties. We don't know which of them answered the survey. Point at a county to see what we found.

By Maurice Tessier, GridLeads · · 130 data center projects

  • Some water pressure
  • Water tight
  • Water very tight
  • Mostly off the Texas grid
  • Data center MW still to come online
  • Project running late (hollow: maybe)
Map of Texas. Of the 18 counties the Attorney General named, the 15 on the main Texas grid are shaded blue by water pressure and the 3 mostly off it are hatched; yellow circles show data center power still to come online; dark dots show a project running late, hollow dots one that may be.San AntonioCollege StationDallasOdessaEl PasoHoustonLubbockMidlandConroeCorpus ChristiAmarilloCanyonTylerFort WorthSan AngeloAustinVictoriaWichita Falls

Selected county · hover or tap the map

Dallas Dallas County

Water tight, new data centers coming, and a project running late

  • Water is tight: 100% of the county is in severe drought or worse, a water shortage is forecast for 2030 or 2040 and groundwater is under strain.
  • We track 44 data center projects here: 28 running and 21 planned or under construction, with about 5,870 MW planned. Some campuses are partly running and partly building, so they count in both.
  • 4 projects have passed a stated opening or completion date (announced, or filed with the state) with no sign the late building is running.
  • Where we could tell how they cool: 20 air-cooled, 1 using both.

Water or power: usually a trade-off

Every data center has to get rid of heat. There are two main ways to do it.

Water-cooled

Uses water, less power

Cooling towers evaporate water to carry heat away. It's efficient, but it drinks a lot of water.

Air-cooled

No water, more power

Fans and chillers push heat into the air. Little or no water, but more electricity, especially on hot days.

  • Water-cooled
  • Using both
  • Air-cooled

Data centers already running 37 where we could tell

2 using both

Data centers not yet running 30 where we could tell

1 water-cooled

The same new sites, by power plus 7,075 MW we couldn't classify

300 MW water-cooled

These are our estimates from permits, city records and company websites, not official figures. Companies like to advertise waterless designs, while cooling towers mostly show up in permits, so water-cooled sites are probably undercounted. The bars leave out 8 projects whose cooling we know but whose running status we could not confirm.

Why this matters if you sell power

  1. 1
    Air cooling adds load. Air-cooled chillers "use no water, they use more energy"3. Two real-world comparisons put it at roughly 6% to 13% more electricity a year45. Across the projects still coming in these counties that look air-cooled, that could mean about 310 to 630 MW of extra demand. Treat that as a ceiling: well-designed dry systems close much of the gap6.
  2. 2
    It lands at the expensive hour. The extra power is needed most in summer heat7, which in Texas runs into the early evening, exactly when ERCOT prices now peak8. Size supply deals for that peak, not the yearly average.
  3. 3
    Late projects shift your timing. When a project slips past its opening date, its power needs slip with it. The five counties below are where that is, or may be, happening now.

The five counties to watch

Dallas Dallas County

44 projects 21 planned or building 5,870 MW planned 4 running late

Water is tight: 100% of the county is in severe drought or worse, a water shortage is forecast for 2030 or 2040 and groundwater is under strain. 4 projects have passed a stated opening or completion date (announced, or filed with the state) with no sign the late building is running. Where we could tell how they cool: 20 air-cooled, 1 using both.

Fort Worth Tarrant County

15 projects 10 planned or building 910 MW planned 3 running late

Water is tight: 100% of the county is in severe drought or worse, a water shortage is forecast for 2030 or 2040 and groundwater is under strain. 3 projects have passed a stated opening or completion date (announced, or filed with the state) with no sign the late building is running. Where we could tell how they cool: 8 air-cooled, 2 water-cooled.

College Station Brazos County

1 project 1 planned or building 1 running late

Water is tight: 96% of the county is in severe drought or worse, a water shortage is forecast for 2030 or 2040 and groundwater is under strain. 1 project has passed a stated opening or completion date (announced, or filed with the state) with no sign the late building is running. We could not tell how these sites are cooled.

Houston Harris County

25 projects 7 planned or building 3,102 MW planned 2 running late (unconfirmed)

Water is tight: a water shortage is forecast for 2030 or 2040 and groundwater is under strain. 2 projects near Houston have passed a stated opening or completion date with no sign the late building is running, though we haven't confirmed they sit in Harris County. Where we could tell how they cool: 6 air-cooled, 3 water-cooled, 1 using both.

Corpus Christi Nueces County

3 projects 2 planned or building 1,000 MW planned 1 running late (unconfirmed)

Water is tight: 100% of the county is in severe drought or worse and a water shortage is forecast for 2030 or 2040. One project may be running late: a stated date has passed and we can't confirm whether it is running. Where we could tell how they cool: 1 air-cooled, 2 water-cooled.

How we did this

Which counties did the Texas Attorney General name in the data center water investigation?

The Attorney General's release of 24 September 2026 names 18 counties where data centers are under initial investigation: Harris, Montgomery, Travis, Dallas, Tarrant, Smith, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector, Wichita, Victoria, Brazos, Nueces and El Paso. Potter, Randall and El Paso sit mostly outside ERCOT, so this screen covers the other 15.

Where does the data come from?

GridLeads is our project-by-project record of large power users in Texas. It holds 150 projects in these 18 counties. We left out 9 power-supply records (mostly power plants), 2 projects in El Paso (not on the main grid), 4 factories and 5 likely duplicates, which leaves 130 data center projects. Some projects in our records don't list a county yet, so they aren't counted here.

How did you decide how each data center is cooled?

We read state environmental permits, building registrations, city and county meeting records, and company websites and filings. We only called a site water-cooled or air-cooled when the evidence pointed one way. For 27 of the 75 projects whose cooling we could call, a permit or statement about that site said so. The rest are based on indirect signs, such as company-wide policy or how the power supply is sized, so treat them as estimates. "Closed loop" on its own wasn't enough, because a closed loop can still use cooling towers.

How did you decide a county is short on water?

A county counts as short on water if it has at least two of these: a quarter or more of the county in severe drought on the US Drought Monitor of 29 September 2026, a water shortage of 10% or more forecast for 2030 or 2040 in the State Water Plan, or strained groundwater (falling water levels, pumping cuts, or a state listing as a groundwater problem area) or a main city at drought stage 2 or higher.

How did you check the work?

Every quote behind every call was re-checked word for word against its source. 393 of 432 matched exactly. The rest were dropped, kept as close paraphrases, or marked as unreachable. We never treated a planned opening date as proof a site is running.

Does this page say which data centers did not report their water use?

No. We don't know which data centers answered the state's survey, and nothing here says any of them didn't. We don't name any company or site.

See the data centers coming to your part of the grid

GridLeads tracks large power users across ERCOT project by project: how many MW, how far along, the sources, and the people behind them.

Sources

  1. Office of the Texas Attorney General, press release on the data center water investigation, 24 September 2026. texasattorneygeneral.gov
  2. Texas Tribune, 14 September 2026, citing Texas Water Development Board records: of 329 data centers surveyed in 2025, "nearly 30% submitted responses." texastribune.org
  3. Shehabi et al., 2024 United States Data Center Energy Usage Report, Lawrence Berkeley National Laboratory. escholarship.org
  4. Google, 2025 Environmental Report, data center efficiency by site (an air-cooled and a water-cooled Nevada site). gstatic.com
  5. Karimi et al., "Water-energy tradeoffs in data centers: A case study in hot-arid climates," Resources, Conservation and Recycling 181 (2022). doi.org
  6. Uptime Institute, briefing on dry cooling energy performance, April 2026. intelligence.uptimeinstitute.com
  7. Amazon sustainability, on evaporative cooling's energy savings in peak summer periods, October 2025. sustainability.aboutamazon.com
  8. Modo Energy, ERCOT power prices research, on price peaks moving to the early evening. modoenergy.com
  9. US Drought Monitor, county statistics for Texas, map of 29 September 2026. droughtmonitor.unl.edu
  10. Texas Water Development Board, 2027 State Water Plan data by county. texasstatewaterplan.org
  11. US Energy Information Administration, Form EIA-861, 2024 utility service areas (which grid each county is on). eia.gov