Will Data Centers and Greed be the Death of Public Water in Texas?

by L. Howard

The City of Granbury in Hood County, Texas, the county seat, a historic town in the Texas Hill Country, is home to Lake Granbury, which plays host to a plethora of water-related recreational activities. The town is best known for its picturesque courthouse square, excellent restaurants, beautiful lakefront views, gated communities, and a rich cultural heritage with over 40 historic Texas landmarks, many dating back to the town’s founding in 1866.

Today, the talk around town has turned to data center construction and the unbelievable amount of water and power they will consume. Folks discuss lake levels, current drought maps, fish stress, present water restrictions, population growth, and suddenly it all starts sounding a bit like a horror film. First, your lawn turns brown, then your dock no longer floats but sits sadly on dry ground, and oh yeah, your water bill, higher than trees.

But wait, what about Hood County’s watershed designation? Will that save the water supply? Of course, it depends on to whom you’re speaking, but it mostly goes like this: watershed designation was never about restricting industry; it was about assuring the growing residential population that the demand for public water will be met. Sounds like the powers that be want it both ways, and with this dichotomy of double speak and laws this (intentionally?) vague, they’ll get it.

Granbury is not the only Texas town wrestling with water pressures. In fact, at least 248 (1) data centers are planned to be built in Texas. Nearly half will be built in unincorporated areas. This is where statewide interests meet backyard reality, and if some people get stepped on “for the greater good,” well, sorry, Charlie. So far, no one has been able to tell me what defines the greater good? Money?

Once you start looking at water supply data, one thing becomes clear: water security is a dogpile of hope without the worry that data centers will suck the well dry. This is Texas. We understand hot, dry weather, and now, we’re learning about urban sprawl and aging systems and the hard facts of living in a fast-growing state. Phew!

What watershed designation actually does.

A watershed designation is not just a label on a map. It usually signals that land sits within an area tied to a public water supply. One that offers drainage protection, runoff control, and/or environmental safeguards. Anti-data center interests are looking at Hood County’s watershed status as a means to stave off thirsty data centers, of which eight are currently proposed in Hood County.

Do these data centers mean the death of public water in Hood County? If all eight of them get approved, yeah, my guess is probably. That sounds dramatic, but the worry behind it is real. Either way, one approval or all eight, it signals a slow decline in water security. Not always a total loss, not always a dry faucet tomorrow, but a creeping sense that the old assumptions no longer hold water.

Can Hood Co, TX, actually use its watershed designation to stop data centers?

Maybe, but the honest answer is that it depends on what legal teeth the designation carries. A watershed designation by itself does not automatically conserve the water or ban data centers. Watershed protection tools can, however, be powerful, but that designation matters only if it connects to enforceable county rules, city ordinances, groundwater protections, stormwater restrictions, reservoir protections, zoning limits, or state environmental reviews, which can raise the cost and the complexity of approval.

When the data center approval process is discussed openly, it creates opportunities for public review and technical objections, and that can strengthen the case that a project is a bad fit for a particular site, especially if neighbors can show risks to water quality, drainage, or supply.

The strongest argument is never a vague complaint such as, “We do not want data centers here.” Decision-makers tend to respond better when concerns are tied to measurable impacts. So make use of the water. Water metrics are an obvious pressure point because some data centers use vast amounts of electricity and water for cooling. Will water drawn for data centers be depriving the residential population of the promise their demands for water will be met?

Stormwater runoff is another pressure point. Data centers leave a huge concrete building footprint. Then there are parking areas, utility yards, and access roads, and this all can change how water moves across the land, so ask how much the project increases impervious cover, which is to say, any human-made surface that does not allow rainwater to seep into the ground, such as roads, parking lots, and rooftops. Ask how runoff will be contained in heavy rains. Heavy rain in a watershed area can mean more erosion, more flooding risk, and more pollutants reaching creeks or reservoirs or public water supplies. Ask where cooling water comes from.

Develop a smart community strategy.

First, confirm exactly what property is inside a formally protected watershed and which rules apply. County maps, city planning materials, and water district regulations will tell the story.

Second, check who has jurisdiction. In Texas, this can get patchy fast. A county may have limited zoning power, while a city, river authority, groundwater district, or state agency may have the power to control the pieces that matter most.

Third, look at the project paperwork. Check site plans, permit filings, utility requests, and public meeting agendas; they will always tell a more revealing story than the sales pitch. Does the project need variances, drainage exceptions, wastewater approvals? What about road wear, road upgrades, power emissions, noise, and compatibility with nearby homes or farms? Have emergency power and water plans been discussed? Find out if local aquifers, wells, or public supply systems are already under strain. Ask what happens if the operator later expands the site; a modest data center today can turn into a much bigger data center tomorrow. Tailoring your approach to paint a clear picture makes it harder for officials to dismiss your concerns as emotional or uninformed. And for sure, they’re going to ask for tax breaks.

A better strategy than kicking the can down the road.

In the Rio Grande Valley, data centers are being proposed and built on agricultural land, drawing on water from drought-stricken counties, and some are connecting to a power grid that’s already strained by residential and commercial building growth due to the lack of a high-powered transmission line network.

In Harlingen, Texas, the Harlingen City Commission has approved a 120-day moratorium to conduct research and update ordinances so they are prepared if a data center ever decides to move within city limits.

One data center project, in Harlingen, is proposing to connect to the power grid, an idea unpopular with both county and city leaders, following public outcry over strained resources and minimal job creation.  Harlingen District 2 Commissioner Daniel Lopez, who is an attorney by trade, drafted an ordinance to regulate data centers, and the city’s attorney is expected to produce another one.

“After doing my research on data centers, you’ll find that they’re necessary if you watch Netflix, use Siri or Alexa, but they don’t necessarily bring the type of growth that a community wants,” Lopez said. “I tried to look at one of our biggest issues with data centers — think water consumption, energy consumption, then heat and pollution from generators, and light pollution.” 

Lopez’s ordinance would require a special use permit mandating a landscaped buffer, annual audits, a sound absorption chamber, and a closed-loop water recycling system. It would also require a utility impact study, a decommissioning restoration bond, and either a contribution to a sustainability mitigation fund or a community benefit agreement. In the event of an emergency, the data center would be required to disconnect from the power grid and operate on backup generator power. (2

The cart is farther down the road in Hood County, where city fathers fear lawsuits. For the second time this month (June 2026), the Hood County Commissioners Court has rejected a proposed county-wide moratorium on large-scale artificial intelligence data centers, citing fears of a legal battle with the state and leaving residents frustrated as even more industrial development heads to the county. “Hood County commissioners clearly feel they must choose between protecting their residents and avoiding a lawsuit,” said Rita Beving of Public Citizen. “It’s a sentiment that has been echoed in other counties where local officials attempt to take action but feel handcuffed by the state. These local leaders are stepping into a regulatory void created by the Texas Legislature, with some members of the legislature issuing thinly veiled threats of litigation if local leaders take action when the legislature won’t. If state lawmakers are not willing to help local communities, they should at least get out of the way.”

“The right to clean water, air, and a peaceful community shouldn’t be outsourced to Big Tech companies or lawmakers who don’t represent this county,” said Joanne Carcamo, a Hood County resident and member of the grassroots group Protect the Paluxy Valley. “The commissioners who have twice voted against the moratorium are essentially saying they would rather see wells go dry and electricity bills go higher than risk a legal fight with the state. This is a failure that prioritizes corporate interests over the residents of Hood and Somervell counties, and it is receiving assistance from a state legislature that is, at best, indifferent to the growing concerns of Texans who view data centers as a threat to their quality of life.” (3)

So, how much power does a single data center use? Think of it this way.

Proposed data centers in Texas range from 5 MW to 11,000 MW in planned capacity. An average data center of 390 MW is capable of powering…
488 grocery stores the size of Texas’ largest H-E-B
244 Houston Rockets arenas
178 Houston Galleria-sized malls
80 Baylor University Medical Center-sized hospitals
18 University of Texas at Austin campuses
8 Dallas Fort Worth International airports (1)
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CupRock is a lifestyle publishing website built around eclectic, everyday-interest editorial content. It offers practical articles across home-hacks, one-pot meals, organic gardening, family safety, wellness, visual storytelling, and general lifestyle topics. We’re also really fond of clean, affordable drinking water. CupRock.com

1 https://www.texastribune.org/2026/06/08/texas-regulation-data-centers-electricity-power-water/
2 https://www.citizen.org/news/facing-the-threat-of-being-sued-by-the-state-hood-county-again-rejects-data-center-moratorium/
3 https://www.rgvbusinessjournal.com/news/28/02/2026/harlingen-data-center-regulation-eneus-energy/