Austin Current is a nonprofit local news organization supported by The Texas Tribune, reporting on Austin government, education and community. Sign up for the Current’s free newsletter here.
Tesla’s Giga Texas increased its annual treated water use by more than 200 million gallons in just two years, raising concerns about whether Austin can fulfill its long-term water conservation plans as Elon Musk advances plans for a new semiconductor plant expected to push demand even higher.
From 2023 to 2025, Tesla’s annual treated water use rose about 68% to 556 million gallons becoming Austin Water’s third-largest customer — up from fifth in 2023, according to Austin Water. The increase is raising new concerns about how water limits are applied, as residents are urged to conserve water while large industrial users continue to expand. In March, Musk announced Terafab, a proposed $20-25 billion semiconductor fabrication plant near Giga Texas, also known as the Gigafactory, in eastern Travis County. Environmentalists warn the project could further strain a persistently drought-stricken region and potentially clash with the city’s long-term water planning efforts.
