Texas Governor Greg Abbott Threatens Criminal Penalties For Data Centers Violating Water Laws

Texas Governor Greg Abbott has directed state water regulators to crack down on artificial intelligence and cloud computing data centers, threatening criminal penalties and permit revocations for facilities that fail to report their water consumption.

In a formal directive sent on Monday, September fourteenth, twenty twenty-six, to the Texas Water Development Board, Abbott ordered the agency to aggressively enforce compliance under the Texas Water Code.

The move comes as state officials grapple with explosive industrial growth alongside lagging transparency from major tech infrastructure operators.

Under Texas law, industrial facilities consuming significant volumes of water are required to complete annual surveys tracking their water usage, supply sources, and on-site utilities.

However, state records reveal a stark breakdown in compliance.

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