Texas Water Crisis Exacerbated by Data Center Secrecy
Texas is experiencing a significant water crisis, yet most data centers in the state are refusing to disclose their water consumption data to state agencies. This lack of transparency is prompting calls for stronger regulation, including a proposed statewide moratorium on data center construction and the potential repeal of their sales tax exemptions. The editorial urges the data center industry to improve corporate stewardship to avoid further government intervention.
Texas is confronting a severe statewide water crisis, with experts projecting the need for tens of billions in new infrastructure to secure future water supplies. Despite this critical challenge, the state's data center industry largely fails to report its water consumption. During a recent House Natural Resources Committee hearing, the Texas Water Development Board revealed only 17% of 341 surveyed data centers responded to inquiries, a compliance rate mirrored in a separate Public Utilities Commission survey.
This lack of transparency has sparked diverse political reactions. Agriculture Commissioner Sid Miller and Democratic candidate Clayton Tucker have proposed a statewide moratorium on data center construction, though the Houston Chronicle editorial board considers this an overreach. Governor Greg Abbott, while previously a proponent of data center growth, has shifted his stance, now urging state regulators to prevent data centers from passing on electrical infrastructure costs to ratepayers and calling for legislative action to mandate efficient water use, even suggesting the repeal of their sales tax exemptions.
The editorial criticizes Attorney General Ken Paxton for not compelling data centers to respond to surveys, contrasting it with his involvement in other regulatory matters. It emphasizes that while Texas aims to remain business-friendly, reasonable guardrails are essential to protect natural resources. The article concludes by stressing the industry's responsibility to provide transparent data on water usage, advocating for compromise over stringent bans.