Abbott Threatens Criminal Penalties for Data Centers Failing to Report Water Use
Texas Governor Greg Abbott has directed the Texas Water Development Board to penalize data centers that have failed to comply with state water-use reporting requirements. Non-compliant data centers face potential criminal referrals and disqualification from obtaining water permits. This directive expands on an existing audit scrutinizing data centers' electricity and water consumption before connecting to the state grid.
Texas Governor Greg Abbott has ordered the Texas Water Development Board (TWDB) to take enforcement action, including potential criminal referrals and permit disqualifications, against data centers failing to report their water usage as required by state law. In a letter to TWDB Chairwoman L
Oreal Stepney and Executive Administrator Bryan McMath, Abbott stated that a significant majority of data centers had not responded to the Calendar Year 2025 survey, which was due March 1, constituting potential civil and criminal violations under the Texas Water Code. Failure to comply also renders them ineligible for certain water permits from the Texas Commission on Environmental Quality (TCEQ).
The Governor's directive builds upon an existing audit initiated in August, which scrutinized data centers seeking to connect to the Texas electric grid. That audit, conducted by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT), requires data centers to disclose information on their electricity and water consumption, water sources, and on-site power generation. Abbott has now directed the TWDB to collaborate with PUCT and ERCOT on the water-related aspects of this audit, emphasizing that any non-compliance with water-use reporting will trigger independent enforcement by the TWDB.
Abbott stressed the importance of data centers sharing the responsibility to protect Texas's water resources, highlighting that the state requires complete and accurate water use surveys. The TWDB is mandated to provide Abbott’s office with an initial update on its enforcement actions within 30 days, with ongoing updates throughout the completion of the data center audit.