Abbott orders penalties for data centers that fail to report water use
Governor Greg Abbott has directed the Texas Water Development Board to penalize data centers that fail to comply with state water-use reporting requirements. Non-compliant data centers could face criminal consequences and become ineligible for certain state permits. This directive is part of a broader effort to audit data center water consumption, with updates on enforcement due by October 14.
Texas Governor Greg Abbott has directed the Texas Water Development Board (TWDB) to impose legal consequences on data centers that do not comply with state water-use reporting requirements. According to the governor's office, some major water users, including data centers, have violated state law by failing to provide mandatory information about their water usage.
Data centers found in non-compliance could face criminal penalties and become ineligible for specific permits, amendments, or renewals from the Texas Commission on Environmental Quality. The TWDB also has the authority to refer cases of noncompliance to appropriate county or district attorneys.
This directive builds on an earlier order from August, where Governor Abbott mandated the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of data centers progressing through ERCOT's interconnection process. This audit collects information on water consumption, water sources, and the adoption of water-efficient technologies. Data center projects that fail to complete this audit process will be denied interconnection.
The TWDB will collaborate with ERCOT in this data gathering effort, and Governor Abbott has requested an update on the enforcement progress by October 14.