Gov. Greg Abbott wants Texas data centers penalized for failing to respond to water use inquiry
Governor Greg Abbott has directed Texas state water regulators to penalize data centers that failed to respond to a water usage inquiry, with over 70% of data centers reportedly not complying. He emphasized the need for data centers to protect Texas water and ensure transparency. Additionally, Abbott previously ordered a moratorium on new data center construction until an audit of their connection to the state's power grid is completed.
Texas Governor Greg Abbott has instructed the Texas Water Development Board to pursue civil and criminal penalties against data centers that failed to comply with a state-ordered survey regarding their water usage. The Water Development Board reported that over 70% of the more than 300 data centers in the state did not respond to the inquiry, hindering the agency's water consumption planning efforts.
Abbott's directive underscores his position that data centers must contribute to protecting Texas's water resources. He has ordered the board to use its enforcement authority for past and future non-compliance, with civil penalties potentially including automatic permit denials from the Texas Commission on Environmental Quality. The governor also mandated the board refer violators to local prosecutors, including county and district attorneys.
This action signifies a shift in Abbott's stance, as he previously championed Texas as a hub for AI development. However, amid growing political concerns in rural, Republican areas regarding data center impacts, Abbott ordered a moratorium in August on new data center construction connecting to the state's stand-alone power grid. He has now directed the Water Development Board to participate in the ongoing audit led by the Public Utility Commission and ERCOT, asserting that "Texans must come first."