Gov. Greg Abbott calls for 'legal consequences' for data centers that fail to disclose water usage
Texas Governor Greg Abbott has directed the Texas Water Development Board (TWDB) to enforce penalties against data centers that failed to comply with state water usage reporting requirements. He highlighted potential civil and criminal violations, calling for legal consequences for past and future non-compliance. Data centers that do not comply could face fines, permit disqualification, and denied utility interconnection.
Texas Governor Greg Abbott has issued a directive to the Texas Water Development Board (TWDB), urging the enforcement of penalties against data centers failing to disclose their water usage as mandated by the state. Governor Abbott's letter to TWDB Chairwoman L'Oreal Stepney highlighted that major water users, including data centers, appear to have committed civil and criminal violations by not providing information required by the Texas Water Code.
The Governor instructed the TWDB to leverage its enforcement authority, which includes penalizing past failures and imposing legal consequences for future non-compliance. Currently, failing to complete the annual Water Use Survey, due every March, is a Class C misdemeanor punishable by a $500 fine. Additionally, non-compliant data centers are ineligible for permits, amendments, or renewals from the Texas Commission on Environmental Quality (TCEQ). Abbott's directive calls for referrals to county or district attorneys and notifications to TCEQ for permit disqualification.
In a related action, Governor Abbott also directed the TWDB on August 3 to collaborate with the Electric Reliability Council of Texas (ERCOT) on an audit of data centers to gather further water-use information. Data centers that do not complete this audit face denial of interconnection to water utilities. The TWDB is coordinating with the Public Utility Commission of Texas (PUC) and ERCOT to audit water consumption, sources, and the implementation of water-efficient technologies. The TWDB is scheduled to provide an update on its enforcement activities to the Governor by October 14.