Gov. Abbott threatens data centers with penalties for failure to complete water usage reports
Texas Governor Greg Abbott has directed the Texas Water Development Board to impose penalties on data centers that failed to complete a water usage survey, citing potential civil and criminal violations. Non-compliant data centers could face legal consequences, including a Class C misdemeanor and disqualification from obtaining permits. This action follows a prior order by Abbott for a "pause" on data center approvals pending a statewide audit of energy and water use.
Texas Governor Greg Abbott has instructed the Texas Water Development Board (TWDB) to enforce penalties against data centers that did not submit required water usage surveys for 2025 by the March deadline. Abbott stated that non-compliant data centers and other major water users may have committed civil and criminal violations, directing the TWDB to use its authority for past failures and future non-compliance.
The Governor's office indicated that data centers failing to complete the survey could face a Class C misdemeanor and become ineligible for permits or renewals from the Texas Commission on Environmental Quality (TCEQ), as per the Texas Water Code. The TWDB is also required to refer non-compliant cases to county or district attorneys and notify the TCEQ.
This directive follows Abbott's earlier "pause" on data center approvals until state regulators complete an audit of energy and water use. The TWDB is tasked with providing an update on enforcement actions by October 14, while the Electric Reliability Council of Texas (ERCOT) aims to finalize its data center audit by December.