Texas Data Centers: Water Use Reporting and Political Implications

Data centers in Texas face criticism for weak penalties when failing to report water usage. A lobby group contends this does not compel compliance effectively. As data center numbers grow in Texas, water consumption and server cooling requirements have become significant topics ahead of November’s elections. Politicians from both major parties in Texas are discussing these facilities amid public concerns.

Republican Governor Greg Abbott has stated that data centers that do not disclose water usage will incur penalties. However, the existing penalty for non-compliance is a Class C misdemeanor, which involves a $500 fine. Kathryn Guerra from Public Citizen argues that this fine does not incentivize compliance, highlighting Texas’s limited water resources.

Abbott’s press secretary, Andrew Mahaleris, mentioned that data centers are responsible for their infrastructure costs and should reuse water, as well as reduce electricity costs for Texans. Additionally, they should avoid disrupting neighborhoods and eliminate outdated taxpayer-funded incentives. The office of Attorney General Ken Paxton has been contacted for comments.

Water Usage Reporting Requirements

Texas is one of the two largest U.S. data center hubs, with close to 700 facilities. Governor Abbott has called the state an AI development epicenter and has previously promoted data center growth with tax incentives. This has led to voter concerns about water and power strain.

A University of Texas/Texas Politics Project poll revealed that 57% of voters oppose new data centers in their communities. Since 2020, Texas law mandates facilities to report water use through surveys informing the state’s resource planning. Non-compliance can result in a misdemeanor charge and potential loss of funding and permits.

Despite the requirements, fewer than a third of data centers have responded to the surveys over a three-year period. In 2023, 22 centers were surveyed, with nearly a third responding. In 2024, 67 centers were surveyed, with a 28% response rate. In 2025, out of 329 surveyed centers, only 30% responded. The state lacks data on whether any penalties have been issued.

Guerra suggests more stringent measures, such as revoking operational authorization until compliance is achieved. The issue has gained public awareness, prompting political figures to address it in election campaigns.

Political Reactions

Data centers are a significant topic in Texas midterm races. On August 3, 2026, Abbott instructed audits of all data centers for detailed water usage information. Non-compliant projects face denial of interconnection. Abbott emphasized shared responsibility for water protection, directing penalties for non-compliance.

Democratic gubernatorial candidate Gina Hinojosa has made data centers a pivotal campaign issue. She argues for stronger community protections and moratoriums on new centers until legislative actions are taken. As of a recent poll, Hinojosa trails Abbott with 45.6% support to Abbott’s 48.9%.

In Senate races, Paxton has announced investigations into data centers in 18 counties that do not report water use. He emphasizes stewardship of state resources and legal accountability. Democratic hopeful James Talarico has criticized the data center industry’s growth, proposing measures to ensure centers pay for their energy and recycle water effectively.

Contact editors Matthew Robinson and Geoffrey Rowland for further information.