Daily Digest — September 15, 2026
Texas Governor Orders Criminal Penalties for Data Centers Failing to Report Water Usage
Governor Greg Abbott directed the Texas Water Development Board (TWDB) on September 14 to pursue legal action — including criminal charges — against data centers that have not submitted mandatory water-use surveys, according to the Texas Tribune. The directive specifies that non-compliant facilities could face Class C misdemeanor charges and become ineligible for Texas Commission on Environmental Quality (TCEQ) permits, amendments, or renewals under Chapter 11 of the Texas Water Code.
As reported by the Houston Chronicle, responses to the 2025 survey were due in March, and a June legislative hearing revealed that less than one-third of companies surveyed by the Public Utility Commission of Texas had responded to a separate water-use inquiry. The TWDB has been ordered to refer violations to county or district attorneys and report enforcement progress by October 14.
Key details from the directive, per the Dallas Express:
- The TWDB must coordinate with ERCOT to verify survey responses and gather data on water-efficient technologies
- Non-compliant projects in ERCOT's interconnection process face denial of grid connection under a separate August 3 audit order
- Prominent facilities cited in 2025 survey results include operations by Bitdeer in Rockdale, Google in Midlothian, and QTS and Meta in Fort Worth
The actions follow growing political pressure from multiple directions. Lt. Gov. Dan Patrick and House Speaker Dustin Burrows have tasked lawmakers with studying data center water and energy demands ahead of the upcoming legislative session. Agriculture Commissioner Sid Miller previously advocated for a temporary development moratorium in May. As reported by KTBS 3 News, the Texas Politics Project's James Henson notes the data center controversy could sway voters across political affiliations as election day approaches.
Gov. Greg Abbott orders Texas water agency to penalize data centers that don’t report their water usage
The Texas Tribune
Greg Abbott orders penalties for data centers that skip water reports
Houston Chronicle
Abbott Orders Penalties For Data Centers That Skip Texas Water Reports
Dallas Express
Texas AI Data Center Boom
KTBS 3 News
Gov. Abbott orders Texas water agency to penalize data centers that don’t report water usage
Bryan College Station Eagle
Philadelphia Activists Rally for Data Center Moratorium
A coalition of activist groups rallied at Philadelphia City Hall on Monday demanding a moratorium on new data center construction, according to the Philadelphia Inquirer. The "No Data Centers in Philly" campaign argues the city lacks zoning regulations to govern these facilities and has gathered over 2,000 petition signatures, as reported by the Philadelphia Tribune.
Organizers pointed to two potential sites — the Bellwether District in South Philadelphia and an area along Grant Avenue in the Northeast — that the Philadelphia Planning Commission identified as large enough for industrial-sized data centers, per 6abc Philadelphia. No specific proposals are currently under consideration for either site.
As reported by FOX 29 Philadelphia, organizers plan to attend an upcoming City Council meeting to lobby for the moratorium, noting that over 500 communities nationwide have already secured data center moratoriums. City Council President Kenyatta Johnson's office confirmed ongoing discussions between Council members and the Parker administration, though no legislation has been formally introduced. The Council is set to reconvene Thursday.
According to Hoodline, the Philadelphia push is part of a broader regional trend:
- Pennsylvania Governor Josh Shapiro signed Executive Order 2026-05, eliminating fast-tracked permits and requiring developers to cover energy infrastructure costs
- Upper Merion Township unanimously rejected a five-data-center plan after a 20,000-signature petition
- Delaware and New Jersey governors have also enacted new data center regulatory packages
Philadelphia faces calls for a data center moratorium amid spreading AI fear and talk of a slowdown
Inquirer.com
Activists rally at City Hall, demand Philadelphia data center moratorium
6abc Philadelphia
Philly group pushes for ban on new data centers
FOX 29 Philadelphia
Philadelphia Activists Rally at City Hall, Demand Data Center Moratorium Now
Hoodline
Gilroy City Council Approves 45-Day Data Center Moratorium
The Gilroy City Council unanimously approved a temporary moratorium on new data center developments, effective immediately for a minimum of 45 days, according to the Mercury News. The decision follows community opposition to a 438,500-square-foot Amazon data center already under construction, which was approved without a city council vote through a process that residents characterized as exploiting a regulatory loophole, as reported by Spectrum News California.
Key provisions of the moratorium, per the Gilroy Dispatch:
- The city will not accept, process, or approve new data center applications during the freeze
- The existing Amazon facility is unaffected, but a potential second Amazon data center in Gilroy is impacted
- The moratorium can be extended for up to two years
- The city will evaluate water use, electrical demand, noise, and pollution standards
As reported by NBC Bay Area, the council had already updated its code in August to mandate council approval for future data center projects and expand notification requirements for large commercial and industrial developments. Neighboring Morgan Hill recently enacted a similar temporary moratorium.
Gilroy approves temporary freeze on new data centers
The Mercury News
Gilroy residents question approval of Amazon data center; city council to discuss moratorium
Spectrum News California
Gilroy City Council will consider temporary moratorium on data centers
Gilroy Dispatch
Gilroy City Council approves temporary moratorium on new data centers
NBC Bay Area
Gilroy considers data center moratorium amid backlash over Amazon project
NBC Bay Area
Inver Grove Heights Exempts Data Center Developer from Moratorium Under Lawsuit Threat
The Inver Grove Heights City Council voted 3-1 to exempt QLevr LLC's proposed 54,000-square-foot data center from a one-year moratorium on data center construction, according to CBS News. The developer had filed a lawsuit arguing the city lacked legal grounds to block a project that complied with existing ordinances.
As reported by WCCO, the city attorney warned that losing in court could expose taxpayers to damages between $20 million and $150 million. The lone dissenting councilor expressed belief the city could have prevailed and pledged to re-evaluate local ordinances.
Per KSTP, the project now moves to a major site plan vote on September 28, where the developer is expected to commit to safeguards addressing noise and other community concerns. The city has added conditions including generator usage regulations and requirements for post-construction sound testing.
Inver Grove Heights City Council approves moratorium carve-out for proposed data center
CBS News
Facing legal threat, Inver Grove Heights officials approve data center carve-out
WCCO - CBS Minnesota
Inver Grove Heights saves taxpayers millions by avoiding lawsuit; data center moves forward
KSTP 5 Eyewitness News
Colleton County Approves Data Center Overlay Zone Despite Opposition
Colleton County Council in South Carolina unanimously approved a new Digital Infrastructure Overlay District allowing data center construction across much of the county's rural land, according to Live 5 News. The decision came despite over 5,000 signatures gathered in opposition and a contentious public hearing where residents raised concerns about environmental impacts, water depletion, and electricity costs.
As reported by WCBD News 2, the approval partially repeals a six-month moratorium on data centers enacted in July, which opponents said lasted only a month. The Southern Environmental Law Center had previously filed a lawsuit against the county regarding the amendment process.
The new overlay district includes several restrictions, per Live 5 News:
- 65-decibel noise cap
- 200-foot buffer setbacks
- Requirement for closed-loop water or air-cooled cooling systems
- Applies to areas west of Interstate 95 and existing industrial zones
According to WCIV, the public meeting was limited to 10 speakers, and council members were escorted by police to their vehicles amidst ongoing protests following the vote. The approval establishes the zoning framework but does not greenlight a specific data center project.
Colleton County approves controversial data center rules despite pushback
Live 5 News
Colleton County adding language to allow data center construction
WCBD NEWS 2
Colleton County leaders OK zoning changes to allow data centers farther north
WCIV
Colleton County to hear public input on controversial data center proposal
WCBD News 2
