Texas Tightens Data Center Water Reporting Enforcement

Texas Governor Greg Abbott on Sep. 14 directed the Texas Water Development Board to enforce mandatory water reporting requirements for major water users, including data centers, after determining some facilities may have violated state law by failing to disclose water consumption. The action strengthens oversight of one of the fastest-growing sources of electricity demand by tying water transparency more closely to both water permitting and electric grid interconnection while supporting the state’s long-term water planning efforts.

The agency prepares Texas’ statewide water plan and relies on current and projected water-use data collected through mandatory surveys under the Texas Water Code. The governor instructed the board to pursue enforcement against noncompliant facilities, including referrals for potential civil and criminal action, and to notify the Texas Commission on Environmental Quality when projects could become ineligible for certain water permits, amendments or renewals.

The move builds on an Aug. 3 directive requiring the Public Utility Commission of Texas and the Electric Reliability Council of Texas to examine data centers seeking electric grid interconnection. Developers must disclose expected water consumption, water sources and conservation measures, with incomplete submissions risking denial of grid access.

The governor also directed the board to coordinate with ERCOT so both agencies collect consistent information during the statewide audit. The board must deliver a progress report to the governor by Oct. 14, 2026, with additional updates as enforcement and the review continue.

The action reflects a broader trend as states including Virginia, Minnesota, Nebraska and Utah strengthen water reporting, permitting and disclosure requirements for data centers amid growing concerns over cooling water demand and rapid electricity load growth.