Texas Data Centers Face Scrutiny Over Water Use Reporting

Data centers in Texas are under fire for weak compliance with mandates on water use reporting. A lobbying group criticized the penalties for non-compliance, as these facilities grow rapidly and require extensive water for cooling servers. This issue is prominent as the midterms approach, with both Republican and Democratic candidates addressing it.

Political Reactions and Legal Requirements

Governor Greg Abbott and Attorney General Ken Paxton, both Republicans, have been vocal about the need for transparency in water usage by data centers. Abbott has warned of penalties, yet the current consequence is a Class C misdemeanor, carrying only a $500 fine. Kathryn Guerra from Public Citizen argues this is insufficient to ensure compliance, especially given Texas’s limited water resources.

Abbott’s press secretary indicates data centers are responsible for their infrastructure setup, including water and electricity use. He emphasizes that residential areas should not be disrupted by these facilities.

Compliance Levels and the Push for Transparency

Despite legal requirements since 2020, only a minority of data centers have followed through with reporting. Surveys conducted by the Texas Water Development Board show less than a third of centers responding in recent years. In 2023, around a third of 22 surveyed centers complied, with 28 percent of 67 centers in 2024 responding, and in 2025, only 30 percent of 329 responded.

The lack of enforcement is highlighted by Guerra, who calls for stricter measures, suggesting operational licenses should be at risk for non-compliance. Public awareness around this issue continues to rise, influencing political campaigns.

Governor Race and Midterm Implications

Data centers are a focal point in the Texas gubernatorial race. Abbott ordered audits for accurate data collection on water use and has halted project interconnections for non-compliance. He maintains that data centers should abide by the Texas Water Code.

Democratic opponent Gina Hinojosa calls for a moratorium on new data centers until legislative protections are enacted. She argues for community involvement in these decisions, yet she trails behind Abbott in polls.

Statements from Paxton and Talarico

Paxton has launched investigations into counties ignoring reporting rules, emphasizing the state’s responsibilities. His Democratic Senate competitor, James Talarico, criticizes the current industry practices, proposing measures to make data centers self-sufficient in energy and water use.

Talarico currently leads in the polls, proposing stricter regulations on these facilities.