Texas AG Paxton investigates hundreds of data centers over water use
Texas Attorney General Ken Paxton is investigating numerous data center developments statewide for failing to report water usage, following a directive from Governor Greg Abbott. Governor Abbott also ordered state environmental regulators to halt new data center permits amid concerns over water and energy consumption. State officials are conducting audits to ensure data centers do not strain Texas's water supply and power grid.
Texas Attorney General Ken Paxton announced on September 24 that his office is investigating data center developments across the state that failed to respond to the Texas Water Development Board's survey regarding water-use reporting requirements. This investigation targets developments in counties including Harris, Montgomery, Travis, Dallas, Tarrant, Smith, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector, Wichita, Victoria, Brazos, Nueces, and El Paso.
The move comes shortly after Governor Greg Abbott ordered state environmental regulators to stop issuing permits to data centers and paused new data center construction. Governor Abbott's directive, which took effect in July, was aimed at ensuring that data centers do not burden Texas's water and energy resources, and it includes compelling major water users to comply with reporting requirements and imposing legal consequences for non-compliance.
Since the audit and new regulations were announced, more than 40 companies, including Amazon, Google, OpenAI, and Anthropic, have publicly committed to complying with Texas' new data center standards. Attorney General Paxton emphasized the state's responsibility to steward its resources and prevent companies from disregarding their legal obligations.