Data center in Smith County under investigation as Paxton demands water usage report
Texas Attorney General Ken Paxton has launched an investigation into numerous data center developments across Texas, including Smith County, for alleged non-compliance with state water usage reporting requirements. His office is demanding that all data centers submit full water use surveys to the Texas Water Development Board. Tyler Vault Data Center, the only public data center in Smith County, stated it uses no water for cooling and has no record of receiving a survey.
Texas Attorney General Ken Paxton's office announced an investigation into numerous data center developments across the state, including Smith County, for alleged failure to comply with state water usage reporting requirements. Paxton stated that hundreds of data centers are under scrutiny to ensure transparency and full compliance with state law regarding water usage, emphasizing the need to steward Texas's resources and protect its water and energy supply.
The investigation targets data centers in various counties, including Harris, Montgomery, Travis, Dallas, Tarrant, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector, Wichita, Victoria, Brazos, Nueces, and El Paso. These facilities have reportedly not provided responses to the Texas Water Development Board's water use survey, which is required under state law for entities using ground and surface water for industrial purposes. The Attorney General's office reiterated its commitment to protecting Texas communities and water, noting there are at least 596 operating and planned data centers across the state.
In Smith County, the Tyler Vault Data Center, identified as the only public data center, responded to the investigation. The company clarified that it does not use water for cooling, employing conventional mechanical cooling combined with outside-air economization and beneficial use of waste heat, rather than cooling towers or evaporative cooling. Tyler Vault, a family-owned business operating since 2009, also stated it has no record of receiving a water use survey from the TWDB. A separate proposed Bitcoin mining facility by Barrio Energy in partnership with Vulcan Core, which was to be located in Tyler, has failed to proceed.