Texas investigates data centers over water usage reporting

The Texas Attorney General’s office has launched an investigation into hundreds of data center developments across the state for failing to comply with water-use reporting mandates. The investigation targets facilities that have not responded to surveys administered by the Texas Water Development Board (TWDB).

The scrutiny spans 18 counties, including Harris, Travis, Dallas, Tarrant, Bexar, and El Paso. Under the Texas Water Code, entities using groundwater or surface water for industrial purposes are required to return annual surveys detailing monthly water usage. Failure to comply is classified as a Class C misdemeanor and can result in the loss of eligibility for certain environmental permits and state financial assistance.

State officials emphasize that accurate data is critical for the Texas State Water Plan, which uses these figures to create 50-year water demand projections. Without this information, regional planners face gaps in predicting future supply needs, which could lead to the underfunding of vital water treatment and infrastructure projects. This regulatory push comes amid a surge in hyperscale data center construction, some of which consume between 1 million and 5 million gallons of water daily for cooling purposes.