Perry Files Bill to Regulate Texas Data Center Water
Senate Bill 338 would require water-efficient cooling, consumption reporting and statewide nuisance standards for data centers.
Updated on Nov. 14, 2026 in Data Centers
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Senator Charles Perry filed Senate Bill 338, joined by fifteen Senate joint authors, to regulate water use, transparency and community impacts of data centers in Texas. The bill follows a seven-hour Senate committee hearing chaired by Perry in September.
Why it matters
The legislation would set statewide rules for how data centers use water and affect neighborhoods, tying compliance to state approvals, grid interconnection and local tax abatements. Texas data center growth has drawn concern from lawmakers about water resources and nearby residents.
Testimony to the Public Utility Commission of Texas found evaporative cooling uses about 3.8 times the water of closed-loop systems, yet only 155 of 377 surveyed data centers responded on time to water-use requests. Whether the bill will pass and how the reporting gap will be closed remain unresolved.
The players
Charles Perry
Texas state senator representing Lubbock, who chairs the Senate committee overseeing the data center hearing and filed Senate Bill 338.
Public Utility Commission of Texas
The state regulatory agency that gathered data center water-use testimony and would receive authority to set statewide data center standards under the bill.
The details
Senate Bill 338 would require closed-loop or equally water-efficient cooling for future data center developments and mandate disclosure of anticipated water needs and actual annual consumption. It would also authorize the Public Utility Commission of Texas to set statewide standards on noise, light and impacts to neighboring property, and cap local tax abatements at 50 percent of a facility's market value.
Timeline
September 2026: Seven-hour Senate committee hearing chaired by Perry on data center impacts.
November 14, 2026: Perry files Senate Bill 338 with fifteen Senate joint authors.
Big Picture
Senate Bill 338 extends the Public Utility Commission of Texas's effort to collect data center water-use figures into enforceable reporting and cooling requirements. It would convert a gap in the agency's data, where only 155 of 377 facilities responded on time, into conditions tied to state approvals and tax abatements.
If enacted, the bill would make water-efficient cooling and public water-use reporting conditions for future data center projects in Texas. Residents near proposed facilities could see statewide limits on noise and light and a dedicated process for complaints.
The takeaway
Texas residents concerned about data center water use can track Senate Bill 338 as it moves through the legislature and compare its reporting requirements against current facility disclosures. Watching how the 155-of-377 response gap is addressed will show whether state oversight becomes enforceable.
Further reading
For the wider picture on facility growth, see data center coverage on Wisevoter.
Source note: This article includes information reported by The Gilmer Mirror.
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