Data Center Water Probe
Texas Attorney General Investigates Hundreds of Data Centers Over Water Use
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Key Points
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Texas has more than 300 operational data centers, with hundreds more planned; it has become the second-largest state for operational data centers, behind Virginia.
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Gov. Greg Abbott imposed a moratorium on new data center development this summer, citing concerns about Texas’ strained water supplies and power grid.
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The Tyler Vault Data Center, which opened in 2009 inside Tyler’s Plaza Tower, is identified as the only active data center in Smith County. A separate proposed Bitcoin-mining facility in Tyler, planned by Barrio Energy with Vulcan Core, has not proceeded.
Texas Attorney General Ken Paxton is investigating hundreds of data centers for failing to report their water usage to state regulators. USA Today reports that fewer than 30% of data centers responded to surveys from the Texas Water Development Board about their groundwater and surface water consumption. The probe covers facilities across multiple counties and comes months after Governor Greg Abbott halted new data center approvals over concerns about Texas' strained water and power supplies.
The investigation aims to ensure data center operators comply with state reporting requirements while protecting Texas' water and energy resources. News Channel 6 Now reports that Paxton's office is targeting entities that draw water for industrial purposes but have not yet responded to the Texas Water Development Board's mandatory survey.
Texas Has 300+ Data Centers With Hundreds More Planned
Texas now ranks as the second-largest state for operating data centers, behind only Virginia. The state hosts more than 300 active data centers today, with hundreds more in development. This rapid growth has strained the state's water supplies and electricity grid, prompting Governor Abbott to take action in the summer by imposing a moratorium on new data center approvals.
Abbott's Moratorium Follows Years of Rapid Growth
Fox 34 reports that the investigation targets data centers in Lubbock, Randall, Ector and other counties across Texas that failed to respond to the water use survey. The state lacks a complete inventory of all data center facilities, meaning some operators may not have been contacted by regulators. The Texas Water Development Board is required to collect water-use data from industries drawing groundwater or surface water for specified purposes.
Tyler's Only Data Center Opened 15 Years Ago
Smith County has one active data center: the Tyler Vault Data Center, which opened in 2009 inside Tyler's Plaza Tower. A separate Bitcoin-mining facility proposed by Barrio Energy and Vulcan Core for Tyler has not moved forward. The inquiry extends to counties including Dallas and Tarrant, which host multiple major data center operations.
Water Reporting Requirements at Center of Probe
The Texas Water Development Board surveys industrial water users as part of state oversight. Data centers are classified as water-intensive operations due to their need for cooling systems. Benzinga notes that the investigation focuses on enforcing compliance with mandatory reporting rules. Paxton's office aims to build a comprehensive picture of how much water data centers consume statewide before deciding on future development policies.
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