Full Breakdown
Texas Suspends New Data Center Permits Over Water-Use Concerns
By Drooid · · How we work
Core Action and Immediate Impact
The Texas attorney general’s office has opened an investigation into hundreds of data-center projects that failed to answer a water-use survey required by state law. The probe follows Governor Greg Abbott’s directive to halt all new data-center permits until audits verify that proposed facilities will not strain the state’s water supply or power grid.
Background and Regulatory Timeline
In June, Abbott instructed the Public Utilities Commission of Texas and the Electric Reliability Council of Texas to safeguard the grid and ensure that data-center expansion does not impose undue financial or resource burdens on Texans. The regulations took effect in July. After lawmakers received testimony highlighting gaps in the water-use data, Abbott ordered the Texas Water Development Board (TWDB) in mid-September to compel major water users to comply with reporting requirements and to enforce legal consequences for non-compliance. A week later, the Texas Commission on Environmental Quality was told to stop issuing data-center permits until the Electric Reliability Council completes its audit.
Official Statements & Responses
Paxton added that the state must protect water and energy resources. Governor Abbott emphasized that no agency may approve new data-center projects until the TWDB and grid audits are finished, underscoring the need for reliable data before any further approvals.
Data and Statistics
- The investigation targets data-center developments in more than 15 counties, including Harris, Dallas, Travis, and El Paso.
- Over 40 technology companies—among them Amazon, Google, OpenAI and Anthropic—have publicly pledged to follow the new Texas standards.
Verbatim Quotes
- “My office is currently investigating hundreds of data center developments to ensure that they are transparent about their water usage and fully compliant with the law,” — General Ken Paxton, news texas attorney
What’s Next
State regulators will continue the audit of proposed data-center connections to the grid, and the TWDB will enforce compliance with water-use reporting. No new permits will be issued until both the water-use and grid audits are completed, a process that officials say will determine whether additional data-center projects can proceed under the revised standards.