Texas Data Centers Use 50 Billion Gallons of Water as State Faces Drought
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Two data centers in San Antonio have used 463 million gallons of water in the past two years.
The Alamo City facilities, owned by Microsoft and the Army Corps, have drained water from the surrounding area despite difficult drought conditions throughout Texas.
Newsweek contacted the San Antonio Water System for more information via email.
Why It Matters
In 2025, data centers across the state are projected to use 49 billion gallons of water, enough to supply millions of households, primarily for cooling massive banks of servers that power generative AI and cloud computing. As Texas attracts tech giants with business-friendly policies and an independent energy grid, water resources have had to keep pace with both population growth and high-technology infrastructure.
The surge in the data centers' water use comes as Texas endures prolonged drought, with about a quarter of the state still experiencing dry conditions despite intermittent heavy rain and flooding.
Stock Image: A Texas resident surveys land and water flow near a flow meter station in Quemado, Texas, on February 22, 2023.
Stock Image: A Texas resident surveys land and water flow near a flow meter station in Quemado, Texas, on February 22, 2023.
Getty Images
What To Know
In San Antonio, data centers operated by Microsoft and the Army Corps consumed 463 million gallons between 2023 and 2024, even as local residents were restricted to watering lawns once per week under Stage 3 drought rules.
The Houston Advanced Research Center (HARC) estimated that Texas data centers would use 49 billion gallons of water in 2025, with consumption projected to soar to 399 billion gallons annually by 2030—representing almost 6.6 percent of the state's total water usage.
While midsize data centers typically use 300,000 gallons daily, comparable to consumption by 1,000 households, large-scale facilities such as those recently built or planned in Texas can consume as much as 4.5 million gallons daily.
Unlike electricity, where Senate Bill 6 granted the Electric Reliability Council of Texas authority to cut power to data centers and other heavy users during emergencies, no analogous state law exists to regulate their water use.
Most data centers rely on evaporative cooling, which consumes large volumes of water and results in significant waste lost to evaporation.
What People Are Saying
Margaret Cook, a water policy analyst at the Houston Advanced Research Center, told Techie + Gamers: "These centers are showing up in places that are very water-stressed. There's no requirement for them to have conversations with communities about how much water they'll use.
"So any of these communities that are allowing data centers in their community are gambling against being able to get new water from future state water plans, from future funding cycles. They're using up the water that was allocated to their population for the future."
What Happens Next
No state legislation limits water usage by Texas data centers, though lawmakers passed new provisions to suspend their power access during grid stress events. The Texas Water Development Board's next State Water Plan is not scheduled for completion until 2027.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
40 minutes ago
- Yahoo
OpenAI Employee Share Sale Could Value Firm at $500 Billion
OpenAI, backed by Microsoft (MSFT, Financials), is in early talks for an employee share sale that could value the artificial intelligence firm at about $500 billion, a source familiar with the matter said. The deal would let current and former employees sell several billion dollars' worth of shares ahead of a possible initial public offering; it would mark a significant increase from OpenAI's current $300 billion valuation. Warning! GuruFocus has detected 7 Warning Sign with MSFT. The company's flagship product, ChatGPT, has driven rapid growth; revenue doubled in the first seven months of the year to an annualized $12 billion and is expected to reach $20 billion by year-end, according to the source. Weekly active users climbed to about 700 million from 400 million in February. The proposed sale follows a $40 billion primary funding round earlier this year, led by SoftBank Group, which committed $22.5 billion to the round; the rest of the funding was raised at a $300 billion valuation. Existing investors, including Thrive Capital, are in talks to participate in the share sale. The transaction would come as competition for AI talent intensifies; tech giants like Meta Platforms (META, Financials) are making multibillion-dollar investments to poach executives and researchers. Private firms such as ByteDance, Databricks and Ramp have also used secondary share sales to refresh valuations and reward long-term employees. OpenAI is planning a corporate restructuring to move away from its capped-profit model, which could pave the way for a future IPO; the company has said an offering would come only when market conditions are right. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Newsweek
43 minutes ago
- Newsweek
Dairy Queen Announces Major Menu Change Starting This Month
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Dairy Queen revealed its highly anticipated fall 2025 menu lineup, reintroducing the popular Pumpkin Pie Blizzard and debuting two desserts for customers nationwide. The new menu is set to launch across participating U.S. locations on August 29, for a limited time. Why It Matters Dairy Queen's seasonal menu updates have become a widely anticipated event, as the fast-food industry heightens its focus on limited-time flavors that help drive customer visits as seasons change. With ongoing competition from major brands like Krispy Kreme and Starbucks, which have both already announced pumpkin-inspired fall offerings, Dairy Queen aims to capture early fall attention and reinforce customer loyalty. Patrons are shown at a Dairy Queen restaurant amid the coronavirus pandemic, on May 25, 2020, in Williams, Arizona. Patrons are shown at a Dairy Queen restaurant amid the coronavirus pandemic, on May 25, 2020, in Williams, To Know The return of the Pumpkin Pie Blizzard, a dessert introduced in 1991, underscores the nostalgic appeal that has become a staple of fast-food seasonal menus. It has been consistently popular among Dairy Queen customers. The seasonal offering combines soft serve with pieces of real pumpkin pie and is finished with whipped cream and a sprinkle of nutmeg. Despite past years including other notable Blizzards, like the Oreo Fudge Brownie and Reese's Peanut Butter Cup Pie, the 2025 fall menu focuses on the Pumpkin Pie Blizzard as its main returning feature. Dairy Queen Reveals Two New Desserts Dairy Queen's 2025 Fall Treat Collection also features two brand-new items: Caramel Toffee Cookie Blizzard: This treat combines Dairy Queen's traditional soft serve with chewy cookie pieces, rich caramel and toffee. This treat combines Dairy Queen's traditional soft serve with chewy cookie pieces, rich caramel and toffee. Maple Cookie Shake: The shake features a maple cookie crumble base blended with soft serve and real milk, topped with whipped cream for a seasonal finish. The fall desserts will also be released nationwide at participating Dairy Queen locations on August 29. The company said these flavors will only be available for a limited time and encourage customers to visit stores before supplies run out. Current summer classics, including the Dipped Strawberry Cheesecake Blizzard and S'mores Blizzard, remain available for those not ready to welcome fall just yet. Newsweek reached out to Dairy Queen for comment via email. What People Are Saying Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek: "The fast-food industry continues to face rising costs, especially for staples like meat and chicken. To offset this, chains are leaning into higher-margin products. Ice cream and dessert items, like Dairy Queen's Blizzards, offer better profitability while also tapping into nostalgia. By bringing back fan favorites, Dairy Queen isn't just appealing to sentiment. It's strategically boosting margins in a challenging cost environment." Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "There's more to this strategy than Dairy Queen cashing in on the pumpkin craze so many other retailers do as the fall months approach. Dairy Queen, like other fast food restaurants, are pushing new menu items in an attempt to win back customers who have stopped eating out as much to save money. The hope is these new items can generate a buzz, increase foot traffic, and ultimately produce more sales." What Happens Next Dairy Queen's 2025 Fall Treat Collection officially rolls out August 29 at participating locations nationwide, remaining on menus for a limited time while supplies last.
Entrepreneur
an hour ago
- Entrepreneur
Microsoft Planning Return-to-Office Mandate: Report
Microsoft employees at its headquarters in Redmond, Washington, may soon be mandated back to the office, according to new reports. Microsoft is planning to implement a stricter return-to-office mandate as soon as next year, sources told Business Insider. Since the pandemic, Microsoft has had a flexible work arrangement, allowing remote work as much as half of the time. According to the BI report, Microsoft is considering increasing the requirement for in-person work for employees based in its Redmond, Washington, headquarters to at least three days a week starting in January. Microsoft is still working out the details of the plan and intends to announce it in September, the sources said. A Microsoft spokesperson told BI that the company was considering revising its flexible work schedule, but had yet to finalize any changes. Related: Microsoft Just Became the Second Company in History to Achieve a $4 Trillion Valuation — Here's How A return-to-office mandate could impact tens of thousands of Microsoft employees. As of June 30, Microsoft employed 228,000 workers, with 125,000 located in the U.S. If Microsoft implements a stricter return-to-office policy, it would join a slew of other companies that have tightened the limits on remote work recently — or eliminated it altogether. In 2025, both AT&T and Sweetgreen revised their stances on remote work, with AT&T asking U.S. staff to work all five days from the office while Sweetgreen mandated four days. Both companies previously required staff to work in person three days a week. Meanwhile, Amazon announced a sweeping return-to-office mandate in September, requiring employees to work from the office five days a week starting in January instead of adhering to a hybrid schedule. Though the move met with pushback from staff — and inspired 500 employees to sign a letter in protest — Amazon persisted with the move. Related: Amazon Tells Thousands of Employees to Relocate or Resign According to a study conducted last year by Bamboo HR, return-to-office mandates were often layoffs in disguise, designed to pare down a workforce without conducting official job cuts. About a quarter of C-Suite executives surveyed wanted to inspire "voluntary turnover" with stricter return-to-office policies. Mass Layoffs Despite Stellar Earnings Microsoft recently conducted mass layoffs, eliminating 9,000 roles in July, or nearly 4% of its workforce. Two months earlier, in May, Microsoft laid off over 6,000 employees, or 3% of its workforce. At the same time, Microsoft has reported stellar earnings, greater than analyst expectations. Last month, Microsoft announced that for the quarter ending June 30, revenue was up 18% from the previous year, reaching $76.4 billion, while net income was $27.2 billion, a 24% increase. Related: Microsoft's CEO Says the Company's Mass Layoffs, Despite Financial Success, Are 'Weighing Heavily on Me' in an Internal Memo Microsoft CEO Satya Nadella explained the job cuts in a memo to staff released on Microsoft's corporate blog last month. Nadella acknowledged the discrepancy between Microsoft's "thriving" financials and his decision to still lay off staff. "This is the enigma of success in an industry that has no franchise value," Nadella wrote, without explaining further. Microsoft stock is up over 24% year-to-date at the time of writing.
