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Abbott Orders State Water Board to Penalize Uncompliant Data Centers

Abbott says noncompliant facilities could face misdemeanor charges, permit denials and interconnection blocks as Texas audits more than 300 data centers.

  • On Monday, Governor Greg Abbott directed the Texas Water Development Board to penalize data centers that fail to disclose water consumption, targeting facilities ignoring state-mandated reporting requirements amid rapid artificial intelligence infrastructure growth.
  • Texas faces rising water demand from industrial users, yet compliance remains low; of 329 facilities surveyed in 2025, only 22.5% responded, complicating efforts to develop a water plan that "meets the needs of Texas."
  • Failing to submit surveys may result in Class C misdemeanors and civil or criminal violations, with non-compliant users becoming "ineligible to obtain permits, permit amendments, or permit renewals" from the Texas Commission on Environmental Quality.
  • Abbott ordered the board to provide an update on enforcement actions by October 14, while coordinating with the Electric Reliability Council of Texas on a separate audit of data centers requesting grid connections.
  • The state maintains a "pause" on data center approvals until regulators complete this audit, as ERCOT plans to finish its review by December, gathering data on water consumption and cooling technologies.
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He is aware of Greg Abbott's order to sanction Texas data centers that do not report their water consumption and legal consequences.

·Vicente López, Argentina
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Texas Scorecard broke the news in Leander, United States on Monday, September 14, 2026.
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