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A cooling tower at a data center
A data center cooling tower. Generic photo; not a Texas facility. (Photo: Rsparks3 / Wikimedia Commons, CC0)

Jane Long

October 15, 2026 · 2 min read

Texas AG Sends Letters to 156 Data Center Projects Over Water Use Reporting

Attorney General Ken Paxton says data center developments in more than 30 counties must give the state current, accurate water-use information.

Texas Attorney General Ken Paxton has sent letters to 156 data center developments across the state telling them they must provide up-to-date and accurate information about their water use, his office announced Thursday.

The letters are part of an investigation Paxton announced earlier into hundreds of data center developments. His office said those under investigation include projects that have not answered the Texas Water Development Board's water-use survey.

"Data center developers must follow the law and respect the Texans and communities affected by their operations," Paxton said. "I am actively investigating data centers across Texas to make sure that Texans and our natural resources are protected."

Where the letters went

The office listed 32 counties, from big metros to the oil patch and the border: Bexar, Brazos, Cameron, Collin, Dallas, Denton, Ector, El Paso, Glasscock, Harris, Hidalgo, Hood, Lubbock, Maverick, McLennan, Midland, Montgomery, Nacogdoches, Nueces, Pecos, Potter, Randall, Sherman, Tarrant, Tom Green, Travis, Victoria, Waller, Ward, Webb, Wichita and Williamson.

The release did not name the companies or say what penalties they could face. The law the state is relying on carries a maximum fine of $500 for failing to return the water board's survey, plus loss of eligibility for state water funding and certain permits, The Texas Tribune reported. Last year only about 30% of the 329 data centers surveyed responded, the Tribune found.

Cameron Poursoltan, director of energy policy for the Data Center Coalition, which represents many operators, told the Tribune the group supports annual water reporting because planners need accurate data to build a water plan that meets the needs of all Texans.

Part of a wider push

The letters add to a broader state crackdown. Gov. Greg Abbott in September directed the TCEQ to halt data center permits until ERCOT completes an audit, and on Sept. 14 told the water board to make data centers comply with water-use reporting. ERCOT and the board are surveying more than 400 data centers about their energy and water use, Houston Public Media reported. The TCEQ owes the governor an update Monday.

Water is not optional

In a state where towns watch their wells and reservoirs every summer, it is reasonable to ask big new water users to say how much they take. Asking for honest numbers is not hostility to business; it is how good neighbors behave. Any penalties should follow the law and the facts once they are known. Read our story on the data center permit freeze and our look at who should pay for data centers.

Hero photo: Rsparks3 via Wikimedia Commons, CC0, cropped and resized.