Overview
- Texas Attorney General Ken Paxton on Sept. 24 opened an investigation into hundreds of data center developments that did not return Texas Water Development Board surveys to force compliance with state water‑use reporting.
- Governor Greg Abbott ordered state agencies to halt data‑center permits on Sept. 21 and the Texas Commission on Environmental Quality has paused air and water permits for infrastructure serving data centers until audits are complete.
- The Electric Reliability Council of Texas is collecting detailed disclosures from data‑center developers about grid dependence, onsite generation, cooling technology and water sources with RFI responses due Oct. 12 and a planned report to the Public Utility Commission on Dec. 10.
- TWDB guidance and state law make failure to complete required water‑use surveys actionable, with penalties that can include ineligibility for TWDB assistance or TCEQ permits and potential misdemeanor charges.
- Major tech companies have pledged to comply but state actions increase project uncertainty, could delay construction, and raise the prospect that developers will shift siting decisions away from rural Texas where groundwater is already stressed.