Texas Gov. Greg Abbott on September 14 directed the Texas Water Development Board (TWDB) to penalize data centers and other major water users that fail to comply with mandatory water-use reporting requirements. The directive follows an assessment that some facilities have ‘committed civil and criminal violations’ by not submitting required surveys under the Texas Water Code.
Abbott instructed the TWDB to enforce penalties for past and future noncompliance, including potential criminal consequences, ineligibility for state permits, and referrals to county or district attorneys. The order also calls for coordination with the Electric Reliability Council of Texas (ERCOT) to conduct a broader audit of data center water consumption.
Core Facts of the Action
- Who acted? Gov. Greg Abbott issued the directive to the TWDB.
- What changed? Facilities that fail to report water use may face criminal penalties, permit denials, or referrals to prosecutors.
Enforcement Details
Under the Texas Water Code, recipients of a TWDB survey must submit water-use data. Failure to comply can result in:
- Criminal or civil penalties
- Loss of eligibility for permits, renewals, or amendments from the Texas Commission on Environmental Quality (TCEQ)
- Referrals to local prosecutors for potential legal action
Abbott’s letter to TWDB Chairwoman L’Oreal Stepney and Executive Administrator Bryan McMath requires the board to provide a briefing by October 14 and submit regular updates on enforcement progress.
Context: Data Centers and Water Use
While data centers currently account for less than 1% of statewide water use, researchers at The University of Texas project that their consumption could rise to 3%–9% by 2040, depending on growth rates, cooling technologies, and power generation choices. The state’s concerns stem from incomplete reporting, which officials say has created gaps in understanding industrial water demand.
This directive follows Abbott’s August 3 order for a broader audit of data centers’ water and energy use by the Public Utility Commission of Texas (PUCT) and ERCOT. The latest action expands enforcement mechanisms to ensure compliance with existing reporting laws.
Next Steps
The TWDB must now:
- Review past noncompliance and determine enforcement actions
- Coordinate with ERCOT on a water consumption audit
- Provide updates to the governor’s office by the October 14 deadline