As lawmakers across the state address community concerns about data centers’ water usage, the city of Austin is looking to create accountability through a July 23 adopted resolution to track large-volume usage and incentivize conservation.

Only 17% of data centers surveyed in 2025 reported their projected water usage, according to data presented at a June legislative hearing. In recent months, a number of elected officials, including Gov. Greg Abbott, have called for greater restrictions on data center development.

The city’s resolution comes as the city of San Marcos banned data centers on June 16 through zoning law and local moratoriums. Now, a growing number of Texas cities and counties are discussing similar legislation.

On Monday, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct an audit and verify that all data center projects in the state follow the agencies’ requirements. According to the governor’s press release, the agencies must complete their audit before approving a data center development, effectively pausing new developments.

How will the resolution address water usage?

While the resolution won’t immediately restrict developers using large amounts of water, it sets the groundwork for developing greater restrictions, according to the resolution. 

The city manager will present recommendations to the Climate, Water, Environment and Parks Committee by Dec. 9 to solidify a new large-volume water customer application process, conservation plans and reclaimed water requirements, according to the resolution.

“Water is life,” the city wrote in the resolution. “Austin Water is currently pursuing generational capital investments in several strategies, including desalination, aquifer storage, and wastewater treatment.”

District 9 Council Member Zohaib “Zo” Qadri, who represents UT and West Campus, stated the resolution will prioritize “increasing accountability” on water use and “ensuring future growth” does not affect residents.

Could the resolution impact the University? 

The resolution could also impact the University, which was one of Austin Water’s three highest-use customers from 2021 to 2025, according to a May city Climate, Water, Environment, and Parks Committee presentation.

In 2025 alone, the city supplied around 860,000 gallons of water, according to the committee presentation. A University spokesperson wrote in an email that Austin Water supports 80% of the University’s potable water needs. A future on-site wastewater reclamation system called UT WaterHub should cut demand in half.

City responds to community concerns around data centers

At the meeting, District 7 Council Member Mike Siegel said the resolution addresses growing concern about the role of data centers and big industry on water supply in Central Texas, including the criticized Dog’s Head development. Some community members fear the site will become a data center site, as the developer did not rule them out. 

Austin Water defines large-volume customers as those using more than 85 million gallons of water at one location annually. According to a study from the University of Georgia, medium-sized data centers can use more than 100 million gallons a year, and large centers can reach more than 10 times as much.

During the meeting’s public comment period, Bill Bunch, executive director of Save Our Springs Alliance, criticized the removal of the stakeholder input process on the resolution and a requirement for analysis on how large volume users affect smaller water users. Revisions, he said, had “substantially watered down” the proposal.

Austin Water wrote in an email it will begin working on the “Council-approved direction” and will respond to the city by the December deadline and did not respond to questions about stakeholder input.

Bobby Levinski, senior staff attorney for Save Our Springs Alliance, said the provisions the Council removed are necessary, especially the stakeholder process. Although he said the resolution needs more policy direction to address large-volume users, he believes it still has a purpose.

Qadri wrote in an email he co-sponsored the resolution because large, unchecked water customers can significantly impact residents’ water supply.

“Even if these measures don’t immediately reduce water consumption, establishing clear expectations and oversight is an important step toward protecting our community’s water resources,” Qadri wrote in an email.

David Eaton, an LBJ School of Public Affairs professor in Natural Resource Policy Studies, said city officials have a responsibility to manage utilities responsibly by using existing industry practices in order to maintain quality drinking water.

“If you’re a city council, and you are the regulator, you are responsible for the water system,” Eaton said.