The Hays County Commissioners Court is set to vote Tuesday on a possible 180-day pause on approvals for water-intensive large-scale industrial projects in unincorporated areas. The resolution would also ask the Texas Legislature for greater authority over data center development amid rising concerns about water and power demand across the state, according to county documents.
The resolution is reemerging after the county tabled a 30-day moratorium proposal in February over concerns the suspension could expose the county to lawsuits. County Judge Ruben Becerra said before postponing the moratorium vote, "I am looking for out-front, bold, creative ways to lean forward so that we can make a stance because we don’t have time to wait until 2027 for the Legislature to meet. We don’t have time."
The first time the proposal was introduced, Becerra said a development pause would give county leaders time to gather scientific data and coordinate with water providers across the region. The resolution being considered Tuesday would create a task force to do just that. The proposal came shortly after the San Marcos City Council rejected a 200-acre data center project within city limits. Hundreds of residents urged the council to deny zoning requests tied to the development, the seventh data center proposed or under construction in Hays County.
Becerra and other commissioners have urged Gov. Greg Abbott to give counties more authority over data center development. "I have always been a pro-business county judge but this is something that is not necessarily pro business," Becerra said in February. "We are in a moment of crisis."
Unlike cities, which have zoning authority, counties typically do not have the power to block development. Calls for data center moratoriums have surfaced in county commission meetings and state legislative hearings across Texas. Last week, Hill County rescinded a one-year data center moratorium approved in May after a developer sued for more than $100 million in damages. The lawsuit argues the county "exceeded its lawful powers."
Texas has already surpassed Virginia as the world’s largest data center market as developers flock to the state, drawn by limited state and local regulation of development and access to inexpensive water and power. More than 70 data center projects were operating or in development between Temple and San Antonio as of May, according to a tally maintained by the Austin American-Statesman. About 5,600 megawatts are under construction in the Austin and San Antonio metro areas, including roughly 20 projects in Austin.
But as big tech firms pour more than $650 billion into AI infrastructure across Texas comes as growing concern has emerged about the projects’ use of increasingly scarce water and electricity demand that could drive up rates for residents. An average 100-megawatt data center in the U.S. consumes about 2 million liters of water a day — roughly the same as 6,500 households — according to an April report from the International Energy Agency. The report projects global data center water use could reach 1.2 billion liters a year by 2030.
Large data centers can draw up to 5 million gallons of water a day, according to the Environmental and Energy Study Institute, about as much as a town of 50,000 people. Grid operator the Electric Reliability Council of Texas has estimated energy demand will surge more than 70% by 2031, driven largely by planned data center growth. Although many proposed projects may never be built, ERCOT projects data center demand will exceed 22,000 megawatts by 2030. During extreme heat, 1 megawatt is enough to power from 200 to 250 Texas homes.