Ken Paxton Probes Data Centers Over Water Usage Reporting

Texas Attorney General Ken Paxton launched an investigation into hundreds of data center developments to determine if they are complying with state water usage reporting requirements. The probe targets facilities that ignored surveys from the Texas Water Development Board, which is legally mandated to collect data on groundwater and surface water usage for industrial and power generation purposes.

The investigation spans numerous regions, including Harris, Dallas, Tarrant, El Paso, Travis, and Bexar counties. State regulators warn that hyperscale facilities can consume between 1 million and 5 million gallons of water daily. Officials state that concealed consumption figures create a blind spot for the Texas State Water Plan, which could lead to the underfunding of water treatment and supply projects for growing communities.

Parallel to the legal action, industry leaders and regulators will meet in Dallas on October 6–7 for the AI Data Center Water Infrastructure Congress. This event will explore technical solutions like closed-loop cooling and reclaimed water supplies, while incorporating recommendations from the Texas Senate Committee on Water, Agriculture, and Rural Affairs following a September 1 hearing on AI data-center water consumption.