Abbott issues another directive on data centers
Texas Gov. Greg Abbott has issued a directive requiring data centers to comply with state water use reporting laws, threatening penalties for non-compliance via the Texas Water Development Board. This action follows an earlier directive and a temporary pause on data center development across the state due to concerns over water and electricity usage, and a low response rate from companies to previous surveys.
Texas Governor Greg Abbott has issued a new directive, compelling data centers in the state to comply with water use reporting requirements enforced by the Texas Water Development Board (TWDB). The directive mandates that the TWDB utilize its enforcement authority to penalize past failures and impose legal consequences for future non-compliance with the Texas Water Code. Governor Abbott emphasized the necessity for data centers to "share the duty to protect Texas water" amidst widespread opposition to data center construction, particularly concerning water consumption.
The Governor's order highlights that data centers "appear to have committed civil and criminal violations" by failing to provide required water usage information to the TWDB. He has instructed the TWDB to partner with the Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT) to audit data centers, collecting detailed information on water consumption, sources, and water-efficient technologies. Any data center failing this audit process will be denied interconnection to the state grid.
This latest action builds on previous directives issued last month, which included a temporary pause on data center development. This pause impacted approximately 1,800 projects seeking regulatory approval for grid connection, representing a potential demand five times Texas' record peak electricity usage. The earlier pause was prompted by a low response rate (less than 10%) from companies to a PUC survey on electricity and water usage. Governor Abbott reiterated four core principles for data centers in Texas: they must not deplete local water, strain the power grid, increase electricity costs, or disrupt communities.