Texas Governor Greg Abbott instructed state regulatory agencies on Monday (September 14) to penalize data centers that fail to disclose detailed water usage information as required by regulations. Texas is one of the fastest-growing regions in terms of artificial intelligence infrastructure development and is currently facing dual pressures on electricity and water resources due to the rapid expansion of data centers.
Governor Abbott directed the Texas Water Development Board (TWDB) to hold data centers and other large water users accountable for ensuring strict compliance with water reporting requirements, stating in a press release from his office that “major water users, including data centers, appear to have violated civil and criminal laws by failing to provide the necessary information to the TWDB.”
Under Texas water law, failure by data centers to complete and submit water usage surveys constitutes a prosecutable offense. It also jeopardizes their eligibility to apply for new permits, modifications, or renewals of environmental permits from the Texas Commission on Environmental Quality (TCEQ). The TWDB is currently investigating the actual and projected water usage of various data centers, and failure to submit the surveys by the deadline will result in the rejection of relevant permit applications or renewals. Abbott has also requested cooperation between the TWDB and the Electric Reliability Council of Texas (ERCOT) to further review the water usage conditions of data centers.
Previously, Texas had suspended the connection of new data centers to the state grid, pending a comprehensive review by regulatory agencies of issues related to their power and water usage. Plans are in place to reform the regulatory oversight of new data centers. In August, Abbott instructed the Public Utility Commission and ERCOT to conduct a thorough review of data centers seeking to connect to the grid to assess their impact on the grid and communities.
This action underscores Texas’ commitment to welcoming the development of the AI industry while strengthening the protection of water resources and power infrastructure. The cooling systems of data centers consume significant amounts of water, and improper management could exacerbate water shortages in certain areas.
(This article is based on a report from Reuters)