Texas Attorney General Ken Paxton (R) has sent letters to 156 data center developments demanding accurate water-use information, including projects in Dallas, Tarrant, Collin and Denton counties.
His office announced the action Thursday as part of a statewide investigation into water-use reporting. The investigation includes data centers that have not answered the Texas Water Development Board’s water use survey.
Data centers and the AI race
Data center expansion is a priority in the Trump administration’s strategy for American leadership in artificial intelligence. Its 2025 AI Action Plan calls for faster data center permitting and greater energy capacity, identifying China’s rapid power-grid expansion as a competitive challenge.
The plan links AI infrastructure to economic and military strength and calls for training American workers to build and operate it.
Texas water reporting requirements
“Data center developers must follow the law and respect the Texans and communities affected by their operations,” Paxton said in the release. “I am actively investigating data centers across Texas to make sure that Texans and our natural resources are protected.”
The letters went to developments in 32 counties. Paxton’s office said it aims to protect Texas resources and prevent unlawful burdens on taxpayers as data center development expands.
Paxton announced the broader investigation September 24, identifying Dallas and Tarrant among the counties under initial review. The Dallas Express covered the investigation when his office launched it.
Survey recipients must submit completed responses under Texas law, according to the TWDB. The agency collects water-use data from operating facilities to support state and regional water planning.
Failure to complete and return the survey can make a recipient ineligible for TWDB funding and certain water-right permits through the Texas Commission on Environmental Quality. The Water Code also makes failure to complete and return the survey a Class C misdemeanor, the board says.
Gov. Greg Abbott (R-Texas) directed the water board September 14 to enforce the reporting law, refer violations to county or district attorneys and notify environmental regulators of potential permit disqualifications.
Paxton’s release does not identify the 156 recipients, provide their water-use figures or announce penalties against individual developments.
