Senator Sparks lays out proposal to pair produced‑water desalination, cogeneration and data centers to reduce freshwater demand

Senator Sparks told the Committee that Senate Bill 22 11 would clarify state law so that desalinated produced water and digital products could be treated as industrial products, and to allow cogeneration facilities that supply both power and desalinated water behind the meter to be treated as qualifying cogenerators rather than retail electric utilities.

Sparks said Texas has "cheap abundant natural gas out in West Texas" and large quantities of produced water from oil and gas operations that could be desalinated and used to cool data centers rather than drawing on freshwater supplies. "The Permian Basin produces roughly 20,000,000 barrels of produced water a day," Sparks said, and the combined projects could become multi‑billion dollar investments. The bill would clarify current law to encourage integrated projects where power generation, desalination and large data center loads co‑locate and operate as an industrial complex.

Supporters told the committee the approach could reduce freshwater demand, provide an alternative for produced‑water disposal, incentivize on‑site treatment and reduce strain on the grid by enabling behind‑the‑meter generation that serves the large load. Senator Sparks acknowledged organized concerns from electric cooperatives and said she was working to address them; she and staff said co‑ops’ service territories are site‑specific and that the policy change is meant to enable projects only where all components make sense in the same location.

Tom Glass of Lee County Conservatives, who testified in support, said the bill could spur desalination projects and added that he favored increasing affordable water supply options.

The committee left the bill pending for further work with stakeholders.