Texas data centers could face penalties over water reporting
Texas Governor Greg Abbott has directed the Texas Water Development Board to begin penalizing major water users, including data centers, for non-compliance with water use reporting requirements. This order aims to ensure accurate data for the state's water plan and follows a prior directive to audit data centers' power and water usage, pausing grid approvals for new projects until the audit is complete.
Texas Governor Greg Abbott has issued a directive ordering the Texas Water Development Board (TWDB) to enforce penalties against major water users, including data centers, for failing to report their water usage. In a letter to TWDB Chair L'Oreal Stepney and Executive Administrator Bryan McMath, Gov. Abbott emphasized that accurate water usage data is crucial for developing the state's water plan and stated that non-compliance could result in civil and criminal violations under the Texas Water Code.
Data centers that do not submit the required water surveys face consequences such as ineligibility for permits and renewals, and potential referrals to county or district attorneys. The governor has tasked the TWDB with coordinating with the Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit water consumption, sources, and the use of water-efficient technologies by data centers. An update on enforcement actions has been requested within 30 days.
This executive order follows an earlier directive from August 3, in which Gov. Abbott instructed state regulators to pause grid approvals for new data centers. This pause is intended to remain in effect until a comprehensive audit of data centers' power and water usage, conducted by the PUCT and ERCOT, is finalized.