Texas Officials Target Data Centers Over Water Disclosure Failures

Governor Greg Abbott and Attorney General Ken Paxton are cracking down on hundreds of data centers that failed to disclose water usage over the last five years. Abbott directed the Texas Water Development Board to notify local prosecutors of noncompliant facilities, while Paxton launched an investigation to ensure transparency across the industry.

Compliance rates are currently low, with only about 30 percent of 329 surveyed data centers responding last year. The Texas Water Development Board reported that this data gap hindered projections for the 2027 state water plan. The Texas for the Data Center Coalition, representing operators, attributed some of the low response rates to discrepancies in contact information.

Legal experts suggest the enforcement effort may face limitations because state law only allows for a maximum fine of 500 dollars per violation, a Class C misdemeanor. Public Citizen argued that these penalties provide little incentive for large corporations to comply. Additionally, threatened penalties such as withholding state funding or environmental permits are largely ineffective, as most facilities are ineligible for such funding and permits cannot be revoked for survey noncompliance.