Texas Attorney General Ken Paxton has launched an investigation into hundreds of data center developments across the state to determine whether they are complying with water-use reporting requirements.
The Office of the Attorney General said Thursday that the investigation targets data center developments that have not responded to the Texas Water Development Board’s water use survey. The agency said it will seek updated and accurate information about water usage from the developments under investigation.
Abbott Orders Enforcement of Water Reporting Law
The investigation follows a September 14 directive from Gov. Greg Abbott ordering the TWDB to compel major water users, including data centers, to comply with water-use reporting requirements and impose legal consequences for past and future failures to comply. Abbott directed the water board to refer failures to the appropriate county or district attorney and notify the Texas Commission on Environmental Quality when a data center may be ineligible for certain permits.
“Data centers must share the duty to protect Texas water,” Abbott said when issuing his directive.
The governor ordered TWDB to provide an update on compliance and enforcement by October 14.
Data Centers Required To Report Water Use
Texas law requires entities that receive a TWDB water use survey to complete and return it. The law covers entities using groundwater and surface water for municipal, industrial, power generation, or mining purposes. TWDB identifies data centers among the facilities required to complete industrial water use surveys.
The survey is used to collect information about water consumption and supplies that supports regional and statewide water planning. TWDB said it conducts annual surveys of thousands of public water systems and industrial facilities across Texas.
The agency’s current guidance states that failure to complete and return a required survey can result in ineligibility for certain TWDB financial assistance and for obtaining or renewing certain water permits through the Texas Commission on Environmental Quality. State law also makes failure to complete the survey an offense punishable as a Class C misdemeanor.
Investigation Spans Multiple Texas Counties
The attorney general’s office said the investigation is ongoing and includes data center developments in counties throughout the state.
The counties initially identified include Harris, Montgomery, Travis, Dallas, Tarrant, Smith, Bexar, Tom Green, Potter, Randall, Lubbock, Midland, Ector, Wichita, Victoria, Brazos, Nueces and El Paso.
Paxton said the investigation is intended to ensure companies provide information about their water use and comply with state requirements.
“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,” Paxton said in the announcement.
He said the state must protect its water and other resources while overseeing development.
TWDB Survey Deadline And Requirements
TWDB says its annual Water Use Survey generally begins in January and is due March 1, although entities that receive a survey notification have specific deadlines for returning it. The agency’s online application for the 2026 survey closed July 1, but past-due surveys can still be submitted using the agency’s printable forms.
TWDB’s industrial survey materials specifically include data centers among the facilities covered by the industrial water-use reporting process.
The attorney general’s investigation will continue as the state reviews data center developments and their compliance with the reporting requirements.
