Texas Lawmakers Seek Oversight, Water Use Data Amid Data Center Expansion
Texas lawmakers and state agencies are struggling to gather essential water usage data from expanding AI data centers, with voluntary company reporting proving insufficient. Governor Abbott has proposed legislative measures for water efficiency and usage reporting, while local communities like Angelina County continue to voice concerns over limited oversight for projects.
Texas lawmakers and state agencies are confronting significant challenges in regulating the rapid expansion of AI data centers across the state, primarily due to a lack of comprehensive data on water consumption. During a recent House Natural Resources Committee hearing, state agencies, including the Public Utility Commission (PUC) and the Texas Water Development Board, reported low response rates to voluntary surveys aimed at understanding data center water usage, leading State Rep. Trent Ashby (R-Lufkin) to advocate for mandatory reporting requirements in the upcoming legislative session.
The debate is particularly acute in East Texas, where a proposed gigawatt-scale data center campus tied to Amp Z at the former Southland Paper Mill site outside Lufkin city limits has generated extensive local concern in Angelina County. Residents and county officials question water-use estimates, wastewater management, aquifer depletion, and the limited regulatory authority of counties, especially in unincorporated areas that lack zoning power. Ben Zeller of the County Judges and Commissioners Association of Texas testified, requesting lawmakers grant counties more authority, including the ability to require water impact statements, public hearings, and buffer standards.
Amidst these challenges, Governor Greg Abbott has directed the PUC and ERCOT to protect residential ratepayers from data center infrastructure costs and plans to propose legislation requiring water-efficient cooling systems, annual usage reporting, changes to tax incentives, and community protections. This move highlights a growing political divide among Texas Republicans, with Agriculture Commissioner Sid Miller calling for a statewide moratorium on new hyperscale data centers, a stance rejected by Railroad Commissioner Wayne Christian, who advocates guiding development to resource-rich areas. Google, a major investor in Texas, has welcomed Abbott’s recommendations. While no statewide moratorium has been enacted, and the Amp Z project in Angelina County remains without a final agreement, local opposition has successfully shifted the policy conversation towards greater oversight and regulation.