Abbott Orders Penalties For Data Centers That Skip Texas Water Reports
Governor Greg Abbott has directed the Texas Water Development Board to pursue legal action, including criminal consequences and permit disqualification, against data centers failing to report their water usage. This move is part of a broader effort to audit data center electricity and water consumption amidst increasing public scrutiny over resource demands and transparency. State Representative Helen Kerwin previously called for a pause on data center development to evaluate long-term impacts.
Texas Governor Greg Abbott has issued a directive to the Texas Water Development Board, instructing them to pursue legal consequences, including criminal charges, against data centers that fail to submit mandatory water-use surveys. This action on September 14 escalates scrutiny on the industry, which faces growing opposition over its resource demands, utility costs, and perceived lack of transparency.
The directive specifies that non-compliant data centers could face criminal penalties and become ineligible for certain water permits, amendments, or renewals under Chapter 11 of the Texas Water Code. The board is also ordered to refer violations to appropriate county or district attorneys and inform the Texas Commission on Environmental Quality about potential permit disqualifications. They must report their enforcement progress by October 14 and coordinate with electricity regulators to gather data on data centers' water consumption and water-efficient technologies.
This follows an earlier August 3 order by Abbott for a comprehensive audit of data centers by the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT). That audit requires verification of projects in ERCOT's interconnection process, with non-compliant projects facing denial of grid connection. The review seeks detailed information on projected electricity and water use, ownership, financial assistance received, and measures to mitigate neighborhood impacts.
Public concerns, voiced by residents, elected officials like State Rep. Helen Kerwin, and environmental advocate Erin Brockovich, center on potential strains on water supplies and electricity infrastructure, as well as insufficient public input. Kerwin had previously urged Abbott to consider a moratorium on large-scale data center development in rural areas. While some developers, such as Crusoe Energy at its Abilene campus, have highlighted water recirculation and renewable energy plans, Abbott's directive aims to ensure comparable disclosures across the industry.