In Texas, data centers are facing criticism for not disclosing their water use. A lobby group claims the penalties are too weak to enforce compliance. The discussion over this issue is intensifying as the state’s data center industry grows. These facilities require significant water for operations, and with midterm elections approaching, the debate is increasingly relevant.
Republican Texas Governor Greg Abbott and Attorney General Ken Paxton, the GOP nominee for the U.S. Senate, have both stressed the issue. They face Democratic opponents in the upcoming elections, where the development of data centers has become a contentious topic. Polls indicate public resistance to these facilities, leading to increased political attention.
Gov. Abbott has stated that data centers failing to report water usage will face consequences. However, the current penalty is a Class C misdemeanor with a mere $500 fine. “A $500 penalty is insufficient to compel disclosure,” said Kathryn Guerra from Public Citizen in an interview with Newsweek. She emphasized the importance of water conservation in Texas.
Abbott’s press secretary, Andrew Mahaleris, remarked that data centers are responsible for their own electricity infrastructure. They should contribute to power generation, recycle water, and not disrupt neighborhoods, while eliminating outdated taxpayer incentives.
Although Newsweek sought a statement from Paxton’s office, there was no response. The state law mandates data centers to report water usage. This aims to aid in planning future water needs. Non-compliance can lead to misdemeanor charges which may affect state funding and environmental permits. Abbott has instructed the Texas Water Development Board to enforce these policies.
Guerra argued that enforcement should have occurred sooner, pointing to a significant grassroots movement in Texas. “Water consumption data should already be available,” she said, criticizing the lack of enforcement under current leadership. The low response rate to the surveys highlights the issue; only about a third of data centers complied over recent years.
The Texas Tribune noted that state authorities were unaware of any fines issued for non-compliance. Guerra suggested stricter measures, potentially revoking operational licenses for firms that do not comply. This consequence could motivate data centers to cooperate.
Abbott and Paxton, as well as their Democratic challengers, are addressing these water usage concerns. This reflects voter unease over water and energy impacts in their communities.
Political Stances on Data Centers
Data centers have surfaced as a key topic in Texas midterm races, including the governor’s race. In August 2026, Abbott mandated the Public Utility Commission of Texas and the Electric Reliability Council of Texas to audit data centers. They are to assess water consumption and efficiency technologies.
Abbott emphasized the obligation of data centers to safeguard Texas water resources. He advocates punitive actions for failures in reporting. Data centers face potential permit denials until audits are complete.
Democratic candidate Gina Hinojosa has focused on community protection and has called for a moratorium on new data centers. Her campaign argues for resident involvement in decisions about data center developments.
Despite trailing Abbott slightly in polls, Hinojosa’s campaign highlights local concerns, pushing for legislative safeguards.
Furthermore, Paxton has stressed the need for responsible stewardship of Texas land. He initiated an investigation into non-compliant data centers.
Talarico, running for a Senate seat, criticized the data center industry for energy and water usage. He proposed measures to make these companies accountable for their own resource consumption.
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