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.
“It’s extremely alarming,” said Paul DiFiore, an environmental attorney who sits on Austin’s Water Forward task force. “All of a sudden, they’re using more water than the vast majority of people in the city.”
Tesla began construction of the Gigafactory in the summer 2020, with the help of $13.9 million tax rebate from Travis County. The factory opened in April 2022 and has since become one of Austin Water’s largest consumers, with usage rising in a short period of time.
Environmental Attorney Sarah Faust, who also sits on Austin’s Water Forward Task Force, said that Tesla was granted a service extension request from Austin Water, a process that does not require City Council approval. Austin Water said it provides water to only a portion of the Gigafactory, and the company’s property extends across the service boundaries of multiple utility providers.
By last fall, the factory had produced 500,000 vehicles — a manufacturing process that, Faust noted, requires a significant amount of water.
In a separate city process first approved in 2018, the city has worked to solidify and refine its 100-year water resource plan known as “Water Forward.” The plan, which was last updated in 2024, is intended to balance water needs against a future of climate change, the possibility of increasingly severe drought and continued growth.
Faust said the task force charged with updating the plan takes into account large commercial consumers, but “when we get new, big users that grow dramatically in a short amount of time, that does cause a little bit more concern.”
She acknowledged that economic development is important, but said as many Austinites are being asked to conserve, the sharp increase in water use raises questions about whether conservation efforts are being applied evenly, or whether large industrial users are operating under different constraints.
Of course. Just seems really fucking weird in the context of Epstein to be talking about never convicted like there aren't some massive fucking asterisks involved.