Texas Debates Water Regulations for Data Centers Amid Growth

News ClipThe Community News·Jack County, TX·7/23/2026

Texas is facing growing concerns about water scarcity and the high water demands of rapidly expanding data centers. The state's "Rule of Capture" groundwater laws allow unregulated pumping in counties without groundwater conservation districts, which data centers are accused of exploiting. Governor Greg Abbott has recently called for a ban on data center development in rural areas in response to these water and energy concerns.

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CyrusOne
Gov: Texas House Natural Resources Committee, Texas Water Development Board, Groundwater Conservation Districts, Jack County, Wise County, Governor Greg Abbott

Texas is grappling with significant water management challenges, exacerbated by the rapid growth of data centers across the state. Columnist Glenn Rogers highlights that despite water being the most precious commodity, Texans are largely uninformed about looming shortages, partly due to the state's unique "Rule of Capture" groundwater laws. This doctrine allows landowners, including massive industrial projects like data centers, to extract unlimited groundwater from beneath their property in counties without a Groundwater Conservation District (GCD), regardless of the impact on neighbors.

The article points out that 73 Texas counties lack GCDs, creating areas where data centers can pump unregulated amounts of water. The Texas Water Development Board (TWDB) has seen the number of data centers surveyed grow from 22 to 341, yet only 17% responded to questions about water usage, hindering future water planning. Data centers are accused of specifically targeting non-GCD areas, as illustrated by the CyrusOne project on the Jack-Wise county line, which plans construction in Jack County (without a GCD) rather than Wise County (which is part of a GCD).

In response to these concerns regarding water and energy demand, Governor Greg Abbott recently called for a ban on data center development in rural areas. The Texas House Natural Resources Committee also met to discuss these issues. Rogers, a rancher and former state representative from Palo Pinto County (an area without a GCD), stresses that Texas's burgeoning population and long-term water shortage projections require substantial investment and policy changes, which face political hurdles in a hyper-partisan environment.