Gov. Greg Abbott on September 14 directed the Texas Water Development Board to pursue legal consequences against data centers that fail to report their water use, escalating scrutiny of an industry facing opposition over resource demands, utility costs and transparency.
The Monday directive targets past and future reporting violations by major water users, including data centers.
“Data centers must share the duty to protect Texas water,” Abbott said.
The announcement did not identify companies facing enforcement or announce that criminal charges had been filed.
Reporting Failures Could Affect Water Permits
According to the governor’s office, recipients of the board’s water-use survey must complete and return it. Failure to comply can carry criminal consequences and make a data center ineligible for certain water permits, amendments or renewals under Chapter 11 of the Texas Water Code.
Abbott instructed the board to refer violations to the appropriate county or district attorney and notify the Texas Commission on Environmental Quality about potential permit disqualification.
The board must report its enforcement progress by October 14 and coordinate with electricity regulators to obtain information about data centers’ water consumption, supply sources and water-efficient technologies.
Water, Secrecy And Local Control
The controversy extends beyond reporting requirements. Residents and elected officials have questioned whether large developments could strain water supplies and electricity infrastructure while advancing without sufficient public input.
As previously reported by The Dallas Express, state Rep. Helen Kerwin urged Abbott in March to consider pausing large-scale data center development in rural communities while officials evaluated the long-term effects on natural resources and infrastructure.
Kerwin cited development interest near the Comanche Peak Nuclear Power Plant and requested clearer opportunities for public notice and citizen participation when projects seek substantial water supplies or grid connections.
Concerns about secrecy have also emerged nationally.
In June coverage by The Dallas Express, environmental advocate Erin Brockovich described complaints from residents who felt excluded from decisions about nearby projects. She argued that nondisclosure agreements and limited communication during planning had contributed to public distrust.
Brockovich’s concerns included water consumption, noise and utility costs. She also acknowledged that communities can benefit when developers disclose impacts and negotiate community benefits.
Electricity Demand And Who Pays
Abbott’s water directive follows his August 3 order for a comprehensive data center audit by the Public Utility Commission of Texas and the Electric Reliability Council of Texas.
That order required verification of projects advancing through ERCOT’s interconnection process before they could move forward. Projects failing to comply would be denied a grid connection.
The review seeks information about projected electricity and water consumption, ownership, public financial assistance and efforts to limit neighborhood impacts. It also examines whether developers will supply their own power or rely on ERCOT’s grid.
At the time of the August announcement, Abbott’s office said ERCOT was considering more than 474 gigawatts of connection requests, approximately 90% from data centers. Those figures represent proposed demand, not electricity already being consumed.
A September 1 Reuters review brought to light another complication: some large electricity requests may be duplicative or associated with developers lacking sufficient financing or expertise. Regulators and consumer advocates warned that speculative demand could distort infrastructure planning and increase costs for customers.
Developers Cite Economic Benefits And Cooling Technology
Supporters point to construction work, tax revenue and the infrastructure needed for artificial intelligence and other digital services. Some developers have also announced designs intended to reduce pressure on local resources.
In its Abilene campus expansion announcement, Crusoe described a cooling system designed to continuously recirculate water in a closed loop without evaporative water loss.
The company also outlined plans for battery storage and solar resources. Local officials quoted in the announcement highlighted anticipated economic activity and tax revenue for public services.
Those commitments are specific to the Abilene project. Abbott’s broader audit seeks comparable disclosures from developers about cooling methods, water supplies and projected consumption, alongside measures addressing noise, lighting, traffic and emergency response.
