Data Centers Threatened With Criminal Penalties by Greg Abbott
Texas Governor Greg Abbott has directed the Texas Water Development Board to penalize data centers that have not complied with legally required water-use reporting. These penalties could include criminal referrals and permit disqualifications, as roughly 80% of data centers have failed to respond to this year's water usage survey. Abbott previously ordered an audit of data centers by the Public Utility Commission and ERCOT, with non-compliant projects facing denial of connection to the state's electric grid.
Texas Governor Greg Abbott has issued a directive to the Texas Water Development Board, instructing them to penalize data centers that have failed to comply with legally mandated water-use reporting.
In a letter to the board's leadership, Governor Abbott stated that major water users, including data centers, appear to have committed civil and criminal violations by not providing information required under the Texas Water Code. Potential penalties include criminal referrals and permit disqualifications. Texas Scorecard sources indicate that approximately 80% of data centers required to report their water usage to the state have not responded to this year's survey.
This action follows a previous order from Governor Abbott for the Public Utility Commission and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of data centers. Data center projects that do not comply with this audit risk being denied connection to the Texas electric grid.