Texas Governor Orders Penalties for Data Center Water-Use Reporting Failures

On September 14, Governor Greg Abbott directed the Texas Water Development Board (TWDB) to enforce penalties on data centers that have not complied with the state-mandated water-use survey. The directive orders the TWDB to use its enforcement authority to punish past non-compliance and to impose legal consequences for any future failures. Abbott also instructed the board to coordinate with the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) on a separate audit of data centers seeking grid interconnection. The board must report its enforcement progress by October 14.

KPRC - Click2houstonGovernor Abbott Directs TWDB To Penalize Data Center Reporting Failures San Antonio CurrentNewsweekThe HillTexas TribuneThe GuardianAbbott Orders Penalties For Data Centers That Skip Texas Water Reports

Texas has become a hub for data-center construction, driven by low energy costs and AI-industry growth. A 2025 Pew tally listed 335 operational data centers with at least 248 more in the pipeline, positioning Texas to potentially surpass Virginia as the world’s largest concentration of such facilities by decade’s end. Water-intensive cooling systems make data centers significant industrial water users, prompting officials to seek more complete consumption data for long-term water planning.

Texas Tribune

• The Houston Advanced Research Center (HARC) estimated Texas data centers consumed ?25 billion gallons of water in 2025.

Newsweek

• HARC projects demand could rise to 29-161 billion gallons annually by 2030, up to 2.7 % of the state’s total water use.

Newsweek

• TWDB’s annual water-use survey, sent to roughly 4,700 municipal systems and 3,200 industrial facilities, achieved a 100 % response rate in its first three years, but compliance fell sharply after 2020. In 2023, 32 % of surveyed data centers responded; in 2024, 28 %; and in 2025, about 30 % of the 329 facilities surveyed submitted responses.

Texas Tribune

The TWDB noted that, as a non-regulatory body, it lacks direct authority to prosecute violations; enforcement responsibility lies with local district attorneys and law-enforcement agencies. The board will coordinate with PUCT and ERCOT to gather additional water-use data as part of the broader audit.

Governor Abbott Directs TWDB To Penalize Data Center Reporting Failures

Local activists and elected officials argue the penalties are insufficient and that the governor should call a special legislative session for stricter regulations. Claudia Hollern, a volunteer with the Caldwell Data Center Action Team, called the directive “a distraction” and urged a moratorium on new projects. Manvel Mayor Dan Davis said, “I’ve taken an approach within my position as Mayor: no to data centers.”

The Hill

• Survey compliance figures vary: *The Hill* cites a 28 % response rate over the past three years, while *The Texas Tribune* shows a slight increase to nearly 30 % in 2025. The discrepancy reflects differing reporting windows and limited transparency about which facilities have been penalized.

Newsweek

• “Data centers must share the duty to protect Texas water. The Texas Water Code requires a complete and accurate water use survey. I direct the Texas Water Development Board to use its enforcement authority to penalize past failures and to impose legal consequences for any future failure to comply,” — Gov. Greg Abbott

The Hill

• “I've taken an approach within my position as Mayor: no to data centers,” — Manvel Mayor Dan Davis

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