Texas Raises the Stakes for Data Center Disclosures
Texas is tightening oversight of data center development through new electricity, water-use, infrastructure-cost and community-impact disclosure requirements. Gov. Greg Abbott has directed state agencies to audit projects, enforce water reporting rules and temporarily halt data center permits while the audit is underway.
Texas has expanded regulatory scrutiny of data centers amid concerns about electricity infrastructure costs, water consumption and community impacts. Gov. Greg Abbott directed the Public Utility Commission of Texas and ERCOT to audit data centers moving through the interconnection process and ensure developers pay for required electricity infrastructure. He also directed the Texas Water Development Board to enforce water-use reporting requirements and ordered the Texas Commission on Environmental Quality to halt data center permits until the audit concludes.
The article, written by August partners Beau Falgout and Matt Harrison, argues that developers should coordinate legal, communications and technical teams to keep regulatory filings and public statements consistent as projects evolve. Inaccurate or outdated disclosures can increase community opposition, invite legal challenges and delay projects, particularly when projected power demand, water use or other impacts change during development.