Texas governor threatens to penalize datacenters not obeying water laws

THE NEWS

What happened

Texas Governor Greg Abbott has ordered state regulators to penalize data centers that fail to comply with water disclosure laws. As Texas becomes a hub for the US data center boom, concerns over water scarcity have led to strict new audits requiring facilities to report usage and sources. Non-compliance could result in denied grid connections.

CONTEXT

Why it matters

Texas Governor Greg Abbott has issued a stark warning to the booming data center industry: comply with water laws or face penalties. The state, already drought-prone, is tightening oversight as demand for power and water surges. Data centers must now disclose their usage sources and efficiency efforts. Failure to complete the mandatory audit means no connection to the Texas power grid. With consumption expected to reach 161 billion gallons annually by 2030, this regulatory shift marks a significant turning point for North American tech infrastructure.

AT A GLANCE

Key facts

• Governor Greg Abbott directed the Texas Water Development Board to penalize data centers failing to disclose water use.
• Texas currently hosts the second-most data centers in the US, with projections suggesting it could surpass Virginia by 2030.
• Data center water consumption in Texas is estimated at 25 billion gallons annually, potentially rising to 161 billion gallons by 2030.
• Projects failing the mandatory water audit will be denied permission to connect to the state's power grid.
• The Texas Water Code requires a complete and accurate survey of water use by major users like data centers.