Victoria County included in data center probe
Victoria County, Texas, is one of 18 counties included in a statewide investigation by Attorney General Ken Paxton's office into data center developments for compliance with water-use reporting requirements. No specific data center project in Victoria County is currently under investigation, though local officials have approved new zoning regulations for future data center and crypto-mining facilities, including water use and cooling requirements. The investigation follows directives from Governor Greg Abbott to halt permits and ensure compliance with water reporting.
Texas Attorney General Ken Paxton's office has initiated a statewide investigation into hundreds of data center developments across 18 Texas counties, including Victoria County. The probe aims to ensure transparency regarding water usage and compliance with mandatory Water Use Surveys issued by the Texas Water Development Board. While no data centers are currently under construction or specifically identified as under investigation in Victoria County, the area has been discussing potential economic development opportunities, such as a proposed artificial intelligence campus by Blue Energy and Crusoe at the Port of Victoria.
The investigation stems from a Sept. 14 directive by Gov. Greg Abbott, who ordered the Texas Water Development Board to compel major water users, including data centers, to comply with reporting requirements and pursue legal consequences for non-compliance. Following this, on Sept. 21, Abbott further directed the Texas Commission on Environmental Quality to halt data center permits until an audit by the Electric Reliability Council of Texas (ERCOT) assessing the developments' impact on the electric grid and water resources is completed.
In preparation for potential future projects, Victoria City Council approved changes to its Unified Development Ordinance in August. These regulations address data centers and cryptocurrency-mining facilities, imposing requirements for closed-loop cooling systems, water management plans, noise limits, and setbacks. These local measures, combined with the Attorney General's investigation, underscore growing state and local scrutiny over data center resource consumption as the industry expands across Texas.