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Texas Moves to Penalize Data Centers for Water Violations

admin1 month ago02 mins
FILE PHOTO: The steel frame of data centers under construction during a tour of the OpenAI data center in Abilene, Texas, U.S., September 23, 2025. REUTERS/Shelby Tauber/Pool/File Photo

By Laila Kearney

NEW YORK, ⁠Sept ⁠14 (Reuters) – The governor ⁠of Texas, one of the world’s ​fastest-growing regions for artificial intelligence infrastructure, directed state ‌regulators on Monday to ‌penalize data centers that fail to ⁠disclose ⁠details about their water consumption. 

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Texas, which halted the connection ​of new data centers to the state electrical grid pending a review of the facilities’ ​power and water use, among other issues, is ⁠undergoing an ⁠overhaul of the ⁠way ​it regulates the server warehouses.

Governor Greg Abbott directed the ​Texas Water ⁠Development Board to “impose legal consequences” on data centers and other large water-consuming entities to comply with water use reporting requirements.

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“Major water ⁠users, including data centers, appear to have committed civil ⁠and criminal violations through failure to provide TWDB with required information about water usage,” Abbott’s office said in a statement. 

The Texas water regulator is attempting to survey data centers about their water use and expected consumption. If the data center ⁠fails to return the survey by the deadline, it will be denied new or renewed environmental permitting needed for the facilities.

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(Reporting ​by Laila Kearney in New York, ​Editing by Franklin Paul)

Copyright 2026 Thomson Reuters.

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