Texas’ crackdown on data centers exposes limits of state law
Texas Gov. Greg Abbott and Attorney General Ken Paxton are directing state agencies to enforce water-use reporting requirements for data centers, most of which have failed to submit required surveys. The existing law allows fines of up to $500 and limited permit or funding consequences, leading experts to question whether it provides meaningful leverage over the rapidly expanding industry.
Texas officials are escalating enforcement against data centers that have failed to report their water use, but the state’s existing law offers limited penalties. Facilities that do not complete required Texas Water Development Board surveys can face a Class C misdemeanor, a maximum $500 fine and restrictions on certain permits or state funding. However, officials and experts said the Water Development Board cannot prosecute violations itself, and many data centers are not eligible for the funding officials have threatened to withhold.
Gov. Greg Abbott has directed the Water Development Board to notify county and district attorneys about noncompliant facilities, while Attorney General Ken Paxton has launched an investigation into data center developments in several Texas counties. The board surveyed 329 facilities in 2025, but only about 30% responded, and records show that 233 of 334 facilities tracked from 2020 through 2025 never submitted a requested survey.
The limited reporting has made it difficult for state planners to measure the industry’s impact on Texas water supplies. Meta reported that its Fort Worth facility uses about 72 million gallons annually and said it supports transparency and water-efficient cooling. Environmental advocates, including Public Citizen, argued that stronger enforcement and better data are needed before lawmakers can craft effective protections, while the Data Center Coalition said annual reporting is important for responsible industry growth.