By Priya Raman · Updated August 25, 2026 · 6 min read
Short answer
Texas heat pushes data center designers to choose between water-cooled chillers with cooling towers, which are efficient but consume water, and air-cooled chillers or dry coolers, which save water but use more electricity in summer. Hybrid designs and warmer liquid-cooling loops can shift the balance. The right choice depends on load, water access and power cost.
In Texas, the choice comes down to a trade-off: cooling towers evaporate water to reject heat efficiently, while air-cooled chillers and dry coolers use almost no water but draw more electricity, especially on hot afternoons. Most large facilities weigh both. Newer liquid-cooled designs that tolerate warmer water can move the balance toward dry cooling, but in summer a chiller is still commonly needed for trim.
What do chillers, cooling towers and dry coolers each do?
- Chiller. A refrigeration machine that cools water for the data hall. See how a chiller works.
- Cooling tower. Rejects heat from a water-cooled chiller’s condenser loop by evaporating a small part of the water.
- Dry cooler. A fluid-to-air heat exchanger with fans. No evaporation, but it can only cool the fluid to somewhere above the outdoor air temperature.
- Air-cooled chiller. Has its own condenser coils and fans, so no tower or condenser water loop is required.
How does the Texas climate change the choice?
Central Texas summers combine long stretches of high dry-bulb temperature with significant humidity. Dry coolers lose capacity as the air gets hot, so supply water must be warm enough for them to work. Towers depend on wet-bulb temperature, which is lower than dry-bulb, so they keep delivering cold water on hot days, at the cost of water consumption. Winter and shoulder seasons offer many hours where either approach can deliver free cooling.
How do the options compare?
| Factor | Water-cooled chiller + tower | Air-cooled chiller | Dry cooler (warm-water loop) |
|---|---|---|---|
| Summer electric efficiency | best | lower | depends on supply temperature |
| Water use | highest (evaporation, blowdown) | very low | very low |
| Footprint | chillers inside, towers outside | large roof or yard area | large yard area |
| Water treatment | required | not required | glycol loop care |
| Fits warm-water liquid cooling | yes | yes | yes, with trim |
| Maintenance focus | water quality, fill, drift | coils, fans | coils, fans, glycol |
What is the water vs energy trade-off?
Evaporative cooling saves electricity but consumes water. Dry cooling saves water but adds fan and compressor energy, and electricity generation itself uses water, so the full picture includes both. For a given project the answer depends on the local water supply, the price and reliability of power, and the community and permit context. We avoid quoting figures here because they vary widely by design and change as projects and rules evolve. See water use in Texas data centers for the broader discussion.
Can hybrid designs help?
Yes. Common patterns include:
- Dry cooling most of the year, with chillers or evaporative assist only on the hottest hours.
- Adiabatic or spray-assisted dry coolers that use water only at peak.
- Warm-water liquid cooling (direct-to-chip or immersion) that raises supply temperature and widens the dry-cooling window.
- Thermal storage to shave summer peaks; see thermal energy storage explained.
What should owners check before choosing?
- Design dry-bulb and wet-bulb temperatures, and how they may shift.
- Water availability, rights and treatment or discharge rules.
- Electric rates, demand charges and interconnection constraints.
- Redundancy requirements and maintenance access.
- Efficiency targets, such as kW per ton; see chiller efficiency.
How should you sequence the decision?
Start with the electrical limit, not the cooling equipment. The utility capacity that is actually available sets how much load the site can carry, and ERCOT large-load rules affect how cooling is counted in that request. Cooling that uses less electricity may leave more room for IT load.
Then set the water assumption. Water-cooled plants use less electricity but consume water, while dry coolers do the opposite. Put a number on annual water use at design conditions and compare it to what the site can secure; the evaporative vs. water-cooled condenser comparison uses the same logic for smaller plants.
Next, decide on redundancy. Redundancy multiplies equipment count and footprint, so settle it before laying out the yard. See N+1 redundancy.
Last, check controls. A good plant with poor staging wastes the efficiency it was bought for. The chiller plant control basics article covers the staging logic that most affects annual energy.
Frequently asked questions
Do Texas data centers need cooling towers?
Not always. Many designs use air-cooled chillers or dry coolers to limit water use. Towers remain attractive when efficiency and capacity on hot days matter most and water is available.
Is dry cooling enough in Texas summers?
Rarely by itself for conventional air-cooled halls. Warm-water liquid cooling extends what dry coolers can do, but peak summer hours often still need chiller trim or evaporative assist.
Which uses less energy, a tower or an air-cooled chiller?
A water-cooled plant with a tower generally uses less electricity in hot weather. The difference depends on equipment and controls.
SpecServis engineers in Ukraine have experience with chillers and industrial refrigeration, and we are planning to enter the Central Texas market. If this field is yours, see our open positions or partnership options.
