
Farm Director KC Shepherd spoke with Billy Howe of the Texas Farm Bureau following a water panel discussion, focusing on the unique legal status of groundwater in Texas, the emergence of major new industrial water users, and the urgent need for new water technology.
Texas Groundwater: The Rule of Capture
Groundwater rights in Texas are distinctive compared to many other states. Texas landowners own the groundwater beneath their property, classifying it as private property.
This ownership structure, based on the historical “rule of capture,” often leads to conflict. Howe noted that landholders seeking to generate income from their water resources may face opposition from neighbors who fear that increased pumping will deplete the water beneath their own land or affect their existing wells. This scenario can create a “neighbor versus neighbor” situation.
The Rise of AI Data Centers as Major Water Users
Traditionally, Texas Farm Bureau members were primarily concerned about metropolitan areas reaching into rural regions for water. However, the biggest current concern is the influx of AI data centers moving into rural Texas.
“Now the AI centers are coming into rural Texas, and they’re using the water,” Howe explained. These major complexes, such as the $40 billion investment recently announced by Google in Texas, require enormous amounts of water for cooling. While developers promise to be serious about reusing and conserving water to mitigate their long-term impact, the initial demand and the sheer scale of the projects are a growing concern for agricultural producers.
Ag producers, who are often keenly aware of the implications for their water supply, are “very wary” of these developments entering their areas.
The Push for Water Technology and Conservation
Given that the options for traditional water solutions—like drilling more wells or building new reservoirs—are limited, Texas must turn to technology to secure its future water supply.
- Shifting Focus: Howe highlighted a shift away from traditional supply projects toward technologies such as desalination, aquifer storage and recovery (ASR), and wastewater reuse.
- Aquifer Depletion: Farmers, particularly those on the Panhandle who rely on non-recharging aquifers, are taking conservation seriously and actively adopting technology and practices to be more efficient with their water.
- Recharge Slowdown: Howe noted that most aquifers, unlike the fast-recharging Edwards Aquifer, rely on slow seepage from outcrop areas during rainfall. This process is extremely slow, often taking 30 to 40 years for water to travel into lower areas.

Wastewater Reuse: Moving Toward Feasibility
The technology for reusing wastewater is already available, but its high expense has traditionally made it non-feasible for agriculture. However, this is changing:
- Oil and Gas Driver: The oil and gas industry is now often willing to sell treated wastewater at a loss just to dispose of it, as deep injection is increasingly causing environmental issues like earthquakes. This creates a potential opportunity for agricultural users.
- State Initiatives: The Texas Legislature recently created a consortium to push water technology forward, bringing together agriculture, technology, and the oil and gas industry.
- Funding: New state funding—$1 billion over the next 20 years—approved by Texas voters, is earmarked to develop and support this critical water reuse and conservation technology.











