Abbott directs TWDB to penalize reporting failures
Governor Greg Abbott has directed the Texas Water Development Board (TWDB) to enforce water use reporting requirements on major water users, including data centers. Non-compliant data centers face legal consequences, including civil and criminal penalties, and potential denial of TCEQ permits or ERCOT interconnection. The TWDB is also mandated to collaborate with ERCOT on an audit of data centers' water consumption.
Governor Greg Abbott has issued a directive to the Texas Water Development Board (TWDB), instructing it to mandate compliance from major water users, including data centers, regarding water use reporting requirements. The Governor emphasized that non-compliance with state law, past or future, will result in legal consequences. He highlighted that data centers specifically appear to have committed civil and criminal violations by failing to provide required water usage information to the TWDB.
Abbott underscored the critical role of data centers in protecting Texas's water resources and stressed that the Texas Water Code necessitates complete and accurate water use surveys for the development of a comprehensive state water plan. He directed the TWDB to leverage its enforcement powers, including referring cases to County or District Attorneys and notifying the Texas Commission on Environmental Quality (TCEQ) for potential permit disqualification for non-compliant data centers.
Furthermore, Governor Abbott instructed the TWDB to collaborate with the Electric Reliability Council of Texas (ERCOT) on an ongoing audit of data centers. This audit, initially ordered by Abbott on August 3, 2026, involves the Public Utility Commission of Texas (PUCT) and ERCOT, requiring detailed information on water consumption, supply sources, and water-efficient technologies. Data centers failing to complete this audit face denied interconnection. The TWDB is expected to provide updates to the Governor's Office on its enforcement and audit progress by October 14, 2026.