Planning for the Future: How Texas Is Securing Energy and Water Resources for Growth
With a population surging past 31 million and the eighth-largest economy in the world, Texas is experiencing an unprecedented wave of industrial growth. This expansion is powered in part by the state’s unmatched energy output — Texas produces nearly a quarter of all U.S. energy, more than any other state. While this growth brings jobs, investment, and innovation, it also places new demands on the infrastructure that underpins the Lone Star State’s economic momentum.
Texas’s Bold Response to Energy and Water Demands
Booming sectors like tech, manufacturing, and logistics are driving sharp increases in Texas’ energy use, placing growing pressure on grid capacity and reliability. At the same time, prolonged drought and aging infrastructure have raised concerns about the long-term stability of water supply systems.
In the face of these critical challenges, Texas is taking bold steps not only to meet its own energy demands, but to be a global leader in the innovative development of natural resources and share with Houston the title of “Energy Capital of the World.” This commitment is driving efforts like:
- Expanding energy capacity through natural gas development, wind and solar expansion, and emerging nuclear technologies
- Upgrading the electric grid with advanced technology and battery storage
- Working with large-scale energy users to reduce system strain and share infrastructure costs
- Developing diversified water supply solutions such as desalination and aquifer storage
- Advancing public-private partnerships to fund and deliver infrastructure upgrades
These initiatives reflect Texas’s commitment to meeting future demand with scalable, sustainable, and business-friendly infrastructure.
Powering Progress: Texas’s Energy Innovation
Texas leads the U.S. in electricity production, oil and gas output, and renewable energy capacity. Thanks to its abundant natural resources and entrepreneurial spirit, the state is rapidly evolving its energy portfolio with significant momentum behind renewables like wind and solar.
In fact, Texas ranks #1 in the U.S. for wind-powered electricity and #1 for utility-scale solar capacity, with over 590 solar companies operating in the state and the solar power market valued at over $50 billion.
To meet surging demand — particularly from data centers, AI infrastructure, and electric vehicles — Texas is planning over 130 new natural gas plants and has greenlit $350 million for small modular nuclear reactors.
Battery storage is also expanding, helping slash blackout risks from 12 percent to less than 1 percent during peak summer months.
Forward-looking regulatory reforms, such as Senate Bill 6, support grid stability by requiring large-scale energy users such as data centers and cryptocurrency miners to coordinate and share infrastructure costs. These reforms reinforce the state’s commitment to reliable, market-responsive energy.
Explore the full energy evolution in Texas to see how public and private leaders are collaborating to keep power flowing and costs low.
Safeguarding Tomorrow: Investing in Water Security
Water, like energy, is essential to economic vitality. Texas is tackling water security with bold legislation and visionary planning. The Legislature has already committed $2.6 billion toward water infrastructure and placed a $1 billion per year water funding referendum on the November 2025 ballot. If approved, this will direct $20 billion over two decades to repair pipelines, build new reservoirs, and expand water reuse through desalination and aquifer storage.
New laws require municipalities to curb water loss, and innovative strategies are turning fracking wastewater into usable supply — a win for industry and conservation alike.
Texas continues to diversify its water sources, with the Texas Water Development Board providing $545 million for desalination projects, including Corpus Christi’s Inner Harbor Desalination Plant, which on completion in 2028 will be Texas’s first large-scale seawater desalination facility, generating 30 million gallons of potable water per day.
Also expected to go online by 2028 is El Paso’s Pure Water Center, the country’s first direct-to-distribution potable reuse plant.
Public–Private Partnerships: A Model for Resilience
Texas understands that lasting solutions require collaboration. Utilities like CPS Energy are partnering with manufacturers and data centers to balance peak loads and avoid strain on the grid. Coalitions involving chambers of commerce, environmental groups, and business leaders are actively shaping policy, advocating for transparency, and ensuring strategic funding reaches where it’s needed most.
This cooperative approach reinforces confidence in the business climate in Texas, making it attractive to site selectors, investors, and corporate executives alike.
Planning for Population and Industrial Growth
With electricity demand expected to rise 75 percent by 2030, and over 1,500 new residents arriving daily, Texas is engineering solutions that scale. State leaders are exploring the energy-water nexus, recognizing that water efficiency and energy sustainability go hand in hand. Thermal power generation is water-intensive, while wind and solar require minimal water — aligning environmental benefits with economic returns.
Texas’s proactive approach ensures industries like advanced manufacturing, aerospace, and logistics can rely on stable, scalable resources. The state’s infrastructure commitments include $148 billion in roadway projects and hundreds of millions for port and broadband upgrades, bolstering the infrastructure in Texas.
These investments complement robust tax incentives in Texas and a business-first regulatory climate, reinforcing why global companies like Tesla, Oracle, Hewlett Packard, Amazon, and so many more are calling Texas home.
As leaders look to the future, confidence in Texas’s economic strength and growth will remain a powerful incentive for investment.
Texas is more than ready for what’s next. With resilient infrastructure, innovative partnerships, and bold vision, the Lone Star State is proving that sustainable growth is just good business.
