Texas Puts Data Centers on Notice Over Water Use
Texas is putting the state’s rapidly growing data-center industry on notice: if you’re using large amounts of Texas water, you’d better report it.
Gov. Greg Abbott has directed the Texas Water Development Board to pursue consequences against data centers and other major water users that fail to disclose their water consumption as required by state law.
And apparently, there are plenty of them.
The state surveyed 329 data centers in 2025. Fewer than 30 percent responded.
That matters because these facilities can use millions of gallons of water to keep their servers and equipment cool. Without accurate numbers, Texas cannot properly plan for the future water needs of its cities, rural communities, farmers and businesses.
Facilities that ignore the reporting requirement could be referred to county or district attorneys. They could also become ineligible for certain environmental permits, amendments or renewals.
Texas is connecting the issue to the power grid as well.
Data-center projects seeking access to the ERCOT system are now expected to provide information about their water consumption, water sources and cooling technology. Refusing to participate in that process could cost a project its connection to the Texas grid.
A large percentage of the state’s data centers are located in North Texas, including several of its biggest reported water users. That makes this much more than a technology story. It’s a Texas growth story—and a question of how the state protects its resources while continuing to attract massive investment.
Texas has always welcomed builders, innovators and big ideas.
But if a company wants to build its future here using Texas water and Texas power, Texans deserve to know exactly what that costs.
The Texas Water Development Board must update the governor on its enforcement efforts by October 14.
Reporting based on information released by the Office of the Texas Governor and public records reported by The Texas Tribune.
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