Woodlands-based Lancium testified before a Texas Senate committee Tuesday, Sept. 1, on data center water use. The hearing came as state lawmakers prepare to regulate the fast-growing industry's water consumption when the Legislature convenes in January 2027.

Sen. Charles Perry, R-Lubbock, who chairs the Senate Water, Agriculture and Rural Affairs Committee, said he plans to file a standalone bill.

"I'll have a standalone bill to address data center water consumption [and] implement guardrails where determined appropriate," Perry said at the hearing, according to Community Impact.

Lancium, founded in 2017 and headquartered in The Woodlands, builds and runs large-scale AI data centers. Community Impact described the company as having three West Texas facilities. Lancium reported 4 gigawatts of capacity under lease as of August 2026, according to a company press release. The company is a Blackstone portfolio company led by CEO and co-founder Michael McNamara.

Google and QTS Data Centers also testified. All three companies told lawmakers they largely use closed-loop cooling systems, which recirculate fluids in a sealed circuit and consume less water than open cooling methods, The Texan reported.

Lancium's 1.0-gigawatt campus in Childress, announced July 15 with partner Crusoe, specifically features what the company calls a "closed-loop, non-evaporative liquid cooling system," according to a Lancium press release.

The hearing revealed gaps in the state's knowledge. Public Utility Commission of Texas (PUC) Executive Director Connie Corona told the committee there is no "comprehensive statewide list" of data center facilities in Texas. The Texas Water Development Board surveyed 324 facilities; only 97 responded.

State data showed the water problem is concentrated. PUC data analysis program manager Chris Brown said 15 of 102 surveyed operational data centers use evaporative cooling. Those 15 made up less than a fifth of the sample but accounted for nearly half of all reported water intake. Most operational facilities and nearly all planned ones reported using non-evaporative systems, Brown said, suggesting future growth may be less water-intensive.

Perry also pressed companies he views as uncooperative. He called out Beacon Data Centers by name, saying the company refuses to communicate with local communities. When Corona noted that a "significant number" of developers had asked the PUC about keeping water data confidential, Perry said there would be no confidentiality on water use, calling water a public resource available to all Texans.

That stance aligns with Gov. Greg Abbott's June 2026 request that lawmakers consider requiring all new data centers to use water-efficient technology. The Senate committee is expected to issue a report in December with recommendations, according to CleanTechnica.

Perry's bill would go before the full Legislature when the session opens in January.