Texas AG’s Office Sends Compliance Letters to Data Centers
On Thursday, Texas Attorney General Ken Paxton’s office announced that it has dispatched letters to 156 data center developments across over 30 counties. The letters urge these centers to adhere to state regulations regarding water usage reporting.
According to a news release, the communication instructs data centers to comply with the water use reporting requirements established by the Texas Water Development Board. Texas law mandates that these facilities respond to the board’s water use survey; however, the office indicated that many are not following these regulations.
Notably, Texas Governor Greg Abbott had previously emphasized the need for data centers to meet their obligations to report water use
“Data centers must share the duty to protect Texas water,” he stated. “The Texas Water Code requires a complete and accurate water use survey. I direct the Texas Water Development Board to use its enforcement authority to penalize past failures and to impose legal consequences for any future failure to comply.”
Since 2020, the TWDB has conducted annual surveys of data centers and other industrial facilities, requesting monthly water usage data. While state law prescribes responses, it imposes only a Class C misdemeanor for noncompliance. However, the agency itself lacks prosecutorial power; that responsibility rests with local authorities, including district attorneys. Staff from the TWDB informed the Texas Tribune that they do not keep track of any fines that may have been issued.
In the release, Paxton remarked, “Data center developers must follow the law and respect the Texans and communities affected by their operations.”
In September, Governor Abbott announced a pause on environmental permits for data centers until an audit is finalized:
The directive instructs the Texas Commission on Environmental Quality (TCEQ) to cease processing data center permits until the Electric Reliability Council of Texas (ERCOT) completes its audit of the backlog of data centers awaiting grid connections. TCEQ is required to provide an update to the governor’s office on its compliance by October 19.
This action follows an earlier order issued in August that initiated the audits and imposed a moratorium on new data center grid approvals. The recent order broadens this freeze to include environmental permits, effectively limiting another avenue for developers to advance their projects.
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