Texas Data Centers Face Criticism Over Water Use Reporting

Data centers in Texas face criticism for inadequate penalties related to water use disclosure. A lobbying group argues the current punishment is insufficient for ensuring compliance. As data centers grow in the state, concerns about their water consumption have surged ahead of the November midterms.

Political Stance on Data Centers

Governor Greg Abbott and Attorney General Ken Paxton, along with their Democratic rivals, have often expressed strong opinions on data center development. Polls show a public preference against expanding these facilities. Abbott warns of fines for non-compliance, yet the consequences are minimal, amounting to a $500 fine.

Kathryn Guerra from the nonprofit Public Citizen states, “A $500 penalty is not much of an incentive to disclose information they simply do not want to disclose.”

Abbott’s office emphasizes that data centers must manage their resource use, including self-funded electric infrastructure and water reuse, without affecting residents or relying on outdated taxpayer incentives.

Requirements for Water Usage Reporting

Texas, one of the largest data center hubs in the U.S., has nearly 700 facilities planned or operating. State law requires these centers to report water usage, aiding in planning future needs. Failing to report can result in fines and denial of state funding or permits.

Fewer than a third comply with survey requirements. In recent years, only about 30% of surveyed data centers cooperated. Accurate data is crucial, and advocates propose stricter measures. This includes potentially revoking a center’s operational ability if non-compliant.

Midterm Election Focus

The issue plays prominently in the midterm elections. Abbott directed the Public Utility Commission and ERCOT to audit data centers on water use and other resources. Non-compliance could result in denied interconnections and halted permits. Democratic challenger Gina Hinojosa calls for a moratorium on new centers until regulations are strengthened.

Abbott stresses the importance of data center accountability, and Hinojosa advocates for community involvement in future projects.

Response from Paxton and Talarico

Paxton initiated an investigation into data centers failing to meet reporting requirements, emphasizing environmental responsibility. His opponent, James Talarico, criticizes the industry’s impact on resource bills and calls for sustainable practices.

Talarico leads in the polls and advocates for policy changes ensuring data centers cover their utility costs and enhance water recycling efforts.