Data Center
Frequently Asked Questions
April 22, 2026 – The Brazos River Authority has recently received a large number of questions regarding data centers, their development and BRA involvement. We’ve put together a list of frequently asked questions to help address your concerns. If you have questions not addressed here, please let us know by emailing information@brazos.org
1. Is the BRA’s Stage 1 Drought Watch due to data centers?
No, the Stage 1 Drought Watch announced on March 30, 2026, was triggered by one of the parameters included in the BRA Drought Contingency Plan, the Palmer Hydrologic Drought Index (PHDI). The PHDI, a product of the National Oceanic and Atmospheric Administration, is an indicator of the level of wet or dry conditions within a particular area, in this case, most of the Brazos River Basin. This Drought Watch was not imposed due to the amount of water used within the basin by data centers or any other consumptive use.
2. Is the BRA selling water to data centers?
The BRA does not currently have any direct contracts with any data center companies. However, it is possible that some of our current contract customers, particularly municipal customers, may be directly providing water to data center companies through the water they have contracted with us. Additionally, some of our industrial customers may choose to temporarily resell water they are not using under their current contracts to other users, including data center companies. In both cases, this water would be provided under contracts already in place and would not constitute new water sales directly from the BRA.
It is also very likely that some of BRA’s current industrial customers may, in the future, change their lines of business and either directly support data centers or develop them themselves. This is not something the BRA can control.
The BRA’s job is to provide water for any legal or statutory use under the Texas Water Code. As long as the water is being used for the purpose stipulated in the contract, the amount used does not exceed the amount specified in the contract, and the amount used is being accurately reported by the receiving entity, that is where BRA’s limited jurisdiction on the matter ends.
3. Does the BRA have water contracts in the works with data centers?
No, the BRA has no contracts in the works for data centers.
4. Has BRA been reserving (setting aside) water for data centers?
No. Until additional water supply is developed and permitted by the state, the BRA has no water available for long-term contracts.
5. Will data centers' water use affect lake levels?
Any water removed from a lake has some effect on the lake’s level, whether it be from natural evaporation or use of the water for municipal, industrial, or agricultural purposes. However, the BRA does not have water to make available to data centers at this time, and we do not expect any noticeable impact on lake levels.
6. Can current contract holders provide their water to data centers? What happens if my city starts providing water to data centers? Will it use up all the water in the lakes?
Yes, in some circumstances, current contract holders can supply water from their existing BRA contracts to data centers. However, use of this water is already considered in BRA’s management of its lakes. It will not use up all the water in the lakes.
Watch this four-minute video detailing why the lake level could be dropping.
7. If the BRA issues a drought watch, does that also affect data centers or just the people?
The BRA’s Drought Contingency Plan does not favor one water use over another. All are treated equally. The BRA’s plan is developed in conformance with the rules governing drought contingency plans for wholesale water providers set forth by the Texas Commission on Environmental Quality in the Texas Administrative Code.
You can view the BRA’s Drought Contingency Plan here.
8. Where can I see a list of entities that use water from the BRA System?
Every year the BRA publish the Customer Water Use and Reservoir Accounting Summary, and you can find those here.
9. Will the BRA stop data centers from being built?
No, the BRA has no regulatory authority or jurisdiction over construction of data centers. Any decisions related to the location, siting, and regulation of data centers are made by local governments (the city or county where the data center is proposing to be built) and other agencies with jurisdiction. Additionally, the Public Utility Commission would likely have some oversight over the functions of any electric generation on-site.
10. If a data center approaches you today, are you going to sell them water?
No. We cannot provide additional long-term water for any uses until new water supply projects are developed.
11. If the BRA is not providing water to these data centers, who is?
Although it is widely thought that the BRA has jurisdiction over all water in the Brazos River Basin, there are more than 1,900 state-issued water rights in the Brazos River Basin. The BRA holds 17 rights, so other water right holders could potentially provide water. It could be the city, a Municipal Utility District, a water district, or any number of other entities providing water. Additionally, other water supplies, including groundwater, could be utilized. The regulation and use of groundwater is outside BRA’s jurisdiction.
If you would like a more in-depth understanding of water rights, go here.
12. What is a water right?
Surface water rights or water permits are granted and regulated by the state through the Texas Commission on Environmental Quality. They allow an individual, company, or government entity a right to divert, store, or use state surface water in Texas. If you’d like a more in-depth description, we have a 38-minute podcast episode dedicated specifically to this question, and you can listen to that here.
13. What’s the difference between a surface water right (permit) and a water contract?
A surface water right (permit) is issued by the state of Texas through the Texas Commission on Environmental Quality and provides rules and requirements that the holder of the water right must abide by. Once a permit is issued, the organization holding the permit can enter into agreements or contracts to make the permitted water available for use by others in accordance with the underlying water right.
14. Who owns the water in our rivers and lakes?
Surface water is owned by the state and held in trust for its residents. In most cases, you need a permit from the state or a contract from a water provider to access raw or untreated surface water from a river or tributary. The Texas Commission on Environmental Quality oversees water rights permitting. A water right or permit defines how, where, and how much water can be used, whether it's stored in a lake or diverted from a river. Groundwater, the water under your feet, is owned by the individual landowner and is regulated by a Groundwater Conservation District if there is a GCD in that area.
15. Will the BRA enforce air and water pollution issues created by data centers?
The Texas Commission on Environmental Quality issues air and water permits and investigates potential causes of pollution when they are reported. The organization is the state’s regulatory authority for air and water pollution. The Brazos River Authority monitors and tests water quality throughout the Brazos River Basin, but it is not authorized by the state to enforce issues.
16. Can you stop data centers from taking groundwater?
No, the BRA does not regulate the use of groundwater. In most cases, rules and requirements for use of groundwater fall under the jurisdiction of groundwater conservation districts.
17. How can you ask people to conserve water when data centers use so much?
One person's effort doesn't lose its value just because a bigger user is moving in next door. Every gallon we save keeps our water supply system a bit healthier, regardless of what others are doing. Additionally, the data center industry as a whole is implementing technologies to conserve water and reduce water use.
18. Where are data centers located?
The Houston Chronicle's maintains a Texas data center tracker: See where data centers are planned or operating near you - https://www.houstonchronicle.com/projects/2026/tx-data-centers-map/
19. Where can I learn more about data centers?
At the direction of the Texas Legislature, the Texas Public Utilities Commission is conducting an ongoing study of data center water use, which will be completed by the end of 2026. You can find more information about this study here:
https://www.puc.texas.gov/industry/water/utilities/energy-and-water-use-survey/faq
Additionally, there are several interim charges being discussed by the Texas House of Representatives and the Texas Senate to research the impacts of data centers on water and electricity. You can find more information about both chambers' committees here:
https://www.house.texas.gov/pdfs/speaker/F-Interim-Charges-3.25.pdf
https://www.ltgov.texas.gov/wp-content/uploads/2026/03/2026-Interim-Charges.pdf
https://im3.pnnl.gov/datacenter-atlas --- This research is supported by the U.S. Department of Energy,
https://comptroller.texas.gov/taxes/data-centers/data-center-lists.php - Provided by the Texas Comptroller's Office.