Texas governor wants data centers penalized for not responding to water inquiry
Texas Governor Greg Abbott has directed state water regulators to penalize data centers that failed to respond to a state-mandated survey on water usage. Over 70% of data centers did not comply, prompting the governor to call for civil and criminal penalties, including potential permit denials. This action follows a prior moratorium on data center construction ordered by Abbott in August.
Texas Governor Greg Abbott has directed the Texas Water Development Board to impose civil and criminal penalties on data centers that failed to respond to a state-mandated survey regarding their water usage. The Texas Water Development Board reported that over 70% of the more than 300 data centers surveyed did not comply with the inquiry, which Abbott stated hindered the agency's ability to plan for state water consumption.
Consequences for non-compliance could include automatic denial of permits from the Texas Commission on Environmental Quality, with violators to be referred to local prosecutors. This move comes as data center water usage becomes a significant political issue in rural Texas, contributing to public mistrust due to a lack of transparency from developers.
Abbott, who previously championed data center investment, has shifted his stance, having already ordered a moratorium on new data center construction permits for facilities seeking to connect to the state's independent power grid in August. He now wants the Water Development Board to join an audit effort led by the Public Utility Commission and ERCOT.