Texas: Governor Abbott Directs TWDB To Penalize Data Center Reporting Failures

~ In a recent announcement, Governor Greg Abbott has directed the Texas Water Development Board (TWDB) to take action against major water users, including data centers, for failing to comply with state water use reporting requirements. The Governor has also instructed TWDB to work with the Electric Reliability Council of Texas (ERCOT) on its audit of data centers in order to gather more information on their water usage.

According to Governor Abbott, it is the responsibility of data centers to protect Texas' water resources. He stated, "The Texas Water Code requires a complete and accurate water use survey. I direct the Texas Water Development Board to use its enforcement authority to penalize past failures and to impose legal consequences for any future failure to comply."

TWDB is responsible for developing a state water plan that meets the needs of Texans, but this task becomes difficult if they are not provided with detailed information on current and projected water consumption. The Texas Water Code mandates that recipients of TWDB surveys must complete and return them. Failure to do so is considered a criminal offense and can result in penalties.

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Governor Abbott's directive also includes partnering with ERCOT on their audit of data centers that are seeking interconnection through their process. This audit will require detailed information on water consumption, sources of water supply, and implementation of water-efficient technologies. Any data center project that fails to complete this audit will be denied interconnection.

TWDB will be working closely with PUCT and ERCOT in order to gather this information and enforce penalties against noncompliant data centers. They have been given a deadline of October 14th, 2026 to update the Office of the Governor on their progress, with further updates as needed.

In his letter addressed to TWDB Chairwoman L'Oreal Stepney and Executive Administrator Bryan McMath, Governor Abbott emphasized the importance of protecting Texas' water resources and ensuring compliance with state laws. He urged TWDB to take swift action and enforce penalties against data centers that have failed to comply with water use reporting requirements.

This directive from Governor Abbott serves as a reminder to all major water users, including data centers, of their responsibility to protect Texas' valuable water resources. Failure to comply with state laws and reporting requirements will result in legal consequences.

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