Texas Targets Data Centers Over Water Data

Texas Governor Greg Abbott directed state regulators to penalize data centers that fail to report water consumption details. Facilities missing the survey deadline face denied environmental permits.

FILE PHOTO: The steel frame of data centers under construction during a tour of the OpenAI data center in Abilene, Texas, U.S., September 23, 2025.

Texas governor Greg Abbott directed state regulators on Monday evening to penalize data centers failing to report water consumption details. The state is tightening oversight amid an unprecedented surge in artificial intelligence infrastructure demand across the United States. The regulatory shift follows a temporary halt on connecting new server warehouses to the state electrical grid pending comprehensive resource reviews.

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