As Austin continues to court high-tech industries that could require large amounts of water, a task force planning the city’s future water supply is warning that economic development cannot come at the expense of conservation.
On Tuesday, the Water Forward Task Force — a community-led group monitoring Austin’s future water supply needs — approved recommendations aimed at ensuring new high-water-use industries, such as semiconductor manufacturers and data centers, undergo a public approval process and make greater use of recycled, non-potable water.
The debate gained urgency after the recent revelation that Tesla’s water use climbed from Austin Water’s fifth-largest customer to its third-largest in just two years, and as the City of Austin seeks to attract more companies with potentially significant water demands while working to clarify its stance on data centers amid a regional boom. The discussion highlights a growing divide between city leaders who want to sustain Austin’s economic growth and conservation advocates who contend stronger safeguards are needed to ensure enough water remains available for future generations.
“I understand the industry push, but there have to be checks and balances,” said Dr. René Bartos, a developmental pediatrician who showed up to the meeting to speak during public comment. “The choices that we make right now shape the lives of our children for years to come, and we need to really slow down and look closely at what we’re doing here.”
The Water Forward Task Force identified that in 2025, Austin’s five largest water customers used approximately 4.5 billion gallons of water, or 13,900 acre-feet, equal to roughly 30% of what Austin Water expects all commercial users to consume in 2030.
The statistic comes as Austin is actively working to attract more large companies and industries expected to fuel future economic growth. On May 7, the Austin City Council approved a resolution directing staff to develop a new economic development strategy aimed at recruiting companies in “target sectors.” The resolution states those investments help fund “the parks and libraries, the housing programs, the social safety net, the health care, the climate investments, the workforce pipelines, the arts and culture, all of the things that make living in Austin enjoyable, equitable, and worth fighting for.”
Members of the Water Forward Task Force said the initial language of the resolution — which looked to recruit industries like data management, artificial intelligence, semiconductors and microelectronics — underscored the need to strengthen water-use regulations ahead of additional large-volume users connecting to Austin’s water system. Those industries were ultimately removed from the version of the resolution that was approved by the City Council.
“We have current large-volume users that are increasing their usage in a drought-prone area in a time in which our future water supply is being pretty well planned for, but has some uncertainties,” said Paul DiFiore, an environmental attorney who sits on the task force. “There’s no way to restrict their water usage in severe drought conditions.”
The approved recommendations would require new data centers to use recycled, non-drinking water, subject new major water users to a public approval process, and expand requirements for large water users to connect to Austin Water’s reclaimed-water system. They also call for water budgets for high-volume users and a review of whether existing conservation incentive programs are effectively reducing water use.
While the task force passed the recommendations, they will require support from four City Council members before a resolution can be brought forward for formal council consideration.
We will now “take these items and find council champions who are interested in moving this forward,” said Sarah Faust, an environmental and water attorney who also sits on the task force. “It’s way better to be proactive than to get stuck in a situation where we end up with more demand for commercial than we expected.”
