Texas officials signal enforcement push on data-center water-use reporting

Texas officials have indicated that they will seek compliance with existing water-use disclosure requirements affecting large data centers, rather than announcing a new reporting regime.

Data centers consuming more than 10 million gallons annually are among the large water users expected to submit water-use surveys to the Texas Water Development Board. In 2025, TWDB surveyed 329 data centers, but received responses from only about 30% of them. Separately, the state identified 334 unique facilities between 2020 and 2025; 233 did not submit the requested survey. These are different facility populations and should not be treated as a single participation metric.

The reporting gap has constrained the state’s planning process. TWDB did not have sufficient information to incorporate data-center water consumption into forecasts for Texas’ 2027 state water plan. For operators and developers, this leaves an incomplete public picture of demand from a rapidly expanding infrastructure segment and of the local-water constraints that may shape future development.

Available submissions nevertheless indicate substantial reported consumption among respondents. Seven facilities reported more than 144 million gallons in aggregate in 2023. Nineteen reported more than 660 million gallons in 2024, while 97 facilities reported 1.4 billion gallons combined in 2025. The 2025 figure covers only responding companies and is not a measure of total Texas data-center water consumption.

The statutory penalty for non-compliance is limited to a Class C misdemeanor and a fine of up to $500. Other potential consequences cited include loss of access to certain state water funding and delays to some environmental permits. Whether those measures create a sufficient compliance incentive for large operators remains uncertain.

The Data Center Coalition attributed the initially low response rate to material discrepancies in TWDB contact information and survey data. That explanation is the industry association’s position and is not independently substantiated in the available material.

For the Texas data-center market, more active enforcement of current reporting rules could increase the importance of water-efficient cooling, environmental disclosure quality and local water-resource availability in project planning. This is an inference from the enforcement signal and the identified planning shortfall; the available information does not describe new rules, named enforcement actions, individual violations or penalties imposed on specific facilities.