Paxton Launches Investigation Into Texas Data Centers Over Water Reporting

Texas Attorney General Ken Paxton has launched a comprehensive investigation into hundreds of data center developments across the state. The probe aims to ascertain whether these facilities are complying with mandatory water-use reporting requirements set by the Texas Water Development Board (TWDB). This action stems from a September 14 directive issued by Gov. Greg Abbott, which mandated the TWDB to enforce water-use reporting from major users, including data centers, and to impose legal ramifications for any past or future failures to comply. Governor Abbott also instructed the TWDB to refer non-compliant cases to county or district attorneys and to inform the Texas Commission on Environmental Quality (TCEQ) if a data center might lose eligibility for certain permits.

Texas law mandates that entities receiving a TWDB water-use survey must complete and return it, covering industrial users like data centers. Failure to do so can result in ineligibility for TWDB financial assistance, inability to obtain or renew TCEQ water permits, and is punishable as a Class C misdemeanor. The Attorney General's office specified that the ongoing investigation includes data centers in multiple counties, including Harris, Montgomery, Travis, Dallas, Tarrant, Smith, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector, Wichita, Victoria, Brazos, Nueces, and El Paso. Paxton affirmed that the investigation's goal is to ensure transparency in water usage and adherence to state law to protect Texas's water resources amidst development.