Texas Cracking Down On Data Centers Over Water
Texas Governor Abbott has ordered a crackdown on data centers failing to disclose their water consumption, threatening criminal penalties and permit disqualification for non-compliance. State regulators are now auditing utility demands and plan to block new facilities without verified resource data, in response to the massive water usage by AI data centers.
Texas Governor Abbott has initiated a statewide crackdown targeting data centers that fail to report their water consumption. The executive order, issued Monday, warns operators of potential criminal penalties and disqualification from water permits if they do not disclose their usage.
The move comes amid a rapid expansion of AI data centers, which are known to consume significant amounts of water for cooling, impacting local and underground reserves. In response, state regulators are actively auditing utility demands and have pledged to prevent new technology facilities from connecting to the power grid unless they provide verified resource data. This action underscores a growing concern in Texas over resource management in the face of increasing data center development.