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Texas Data Centers Face Crackdown Calls as $500 Fine Derided

Texas Data Centers Face Crackdown Calls as $500 Fine Derided

Summary

Texas has many data centers that use a lot of water to run and cool their machines. State law requires these centers to report their water use, but many do not, and the penalty for not reporting is only a $500 fine, which some say is too small to encourage compliance. This issue is becoming more important as Texas voters worry about water shortages and the impact of data centers on their communities.

Key Facts

  • Texas has nearly 700 data centers operating or planned, making it one of the largest data center hubs in the U.S.
  • Since 2020, Texas law requires data centers to report how much water they use.
  • Not reporting water use can result in a Class C misdemeanor and a $500 fine, plus possible loss of state funding and permits.
  • Less than one-third of data centers have submitted their water usage surveys in recent years.
  • Governor Greg Abbott has ordered punishment for centers that fail to report water use.
  • A poll showed 57% of Texas voters oppose data centers being built in their communities.
  • Data centers need a lot of water and electricity, raising concerns about strain on state resources.
  • The Texas Water Development Board is responsible for monitoring water use and enforcing rules for data centers.
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