Texas at a Crossroads: Surging Energy Demands Amid a Looming Water Crisis
- Timothy Beggans
- Oct 30
- 2 min read
Texas is powering America’s future—its tech boom, manufacturing renaissance, and energy expansion are reshaping the state’s economy. But beneath the prosperity lies a rising threat: water scarcity.
Houston’s peak power load is projected to surge nearly 50% within six years, driven by explosive data center growth and industrial demand. With over 390 data centers already operating across the state—from Dallas to Austin—the grid is straining under unprecedented load, prompting utilities like CenterPoint Energy to plan more than $65 billion in upgrades to maintain reliability and resilience.
Yet, this energy surge collides with a worsening water crisis. The Texas Water Development Board projects that by 2070, water demand could exceed supply by 5.4 million acre-feet annually, fueled by population growth to more than 51 million, persistent droughts, and aging infrastructure that leaks billions of gallons each year.
In South Texas, dwindling Rio Grande flows—partly due to Mexico’s treaty shortfalls—have already shuttered the state’s last sugar mill, erasing 500 jobs and nearly $500 million in local economic activity. Experts like Dr. Wendy Jepson of Texas A&M warn of “peak water security,” a moment when safe, affordable water becomes inaccessible for millions, hitting vulnerable communities hardest.
Without decisive action, the state could lose 1.3 million jobs and $137 billion in income by 2070. Solutions exist: large-scale desalination, smart water conservation, and modernized infrastructure, backed by federal funds and state bonds under the Texas Water Plan. Data centers and manufacturers must also embrace low-water cooling technologies and circular reuse systems.
Texas has long thrived on innovation—now it must apply that same spirit to securing its most essential resource.
What’s your take on balancing Texas’ energy ambitions with its water reality?
Sources: UtilityDive | DataCenterMap | Texas Tribune | Texas Policy Foundation | Texas A&M | Texas Water Development Board
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