Paxton Targets Hundreds of Texas Data Centers Over Water Reporting Gaps
Texas Attorney General Ken Paxton has launched an investigation into hundreds of data centers statewide for failing to report water usage, citing concerns about strain on state resources. This comes as data center growth rapidly increases and the state's water plan does not account for the industry's demand. Legislators are preparing to address cooling standards, while Hood County recently rejected a moratorium on industrial development amidst opposition to a large data center project.
Texas Attorney General Ken Paxton has initiated an investigation targeting hundreds of data centers across Texas for alleged non-compliance with state water usage reporting requirements. Paxton expressed concerns that the industry's rapid growth is straining the state's water and energy resources and vowed to protect communities.
The investigation follows reports from various sources, including woai.iheart.com and the Houston Chronicle, indicating strikingly low compliance rates; only 17% of 341 data centers responded to the Texas Water Development Board's survey. The state agency currently lacks enforcement power to compel responses. This reporting gap coincides with a significant surge in Texas data centers, from 22 in 2023 to 341 last year, with the draft 2027 State Water Plan not incorporating industry demand.
Water consumption for cooling servers is a primary concern, with analyses estimating Texas data center water use could reach 49 billion gallons by 2025 and up to 399 billion gallons annually by 2030. This uncertainty has fueled local friction, as seen in Hood County, where commissioners voted 3-2 to reject a proposed temporary moratorium on industrial development. Residents voiced strong opposition to the planned 2,600-acre Comanche Circle development near Tolar, which could include nine data center campuses potentially consuming 1 million gallons of water daily.
State Sen. Charles Perry advocates for curbing evaporative cooling systems, which are water-intensive. QTS executive Ryan Kuithe noted that all new QTS data centers since 2019 utilize closed-loop systems that consume