Texas Governor Greg Abbott has directed state regulators to penalize datacenters failing to comply with water disclosure laws. The move aims to ensure the drought-prone state's water resources are protected.
Abbott issued the directive to the Texas Water Development Board on Monday, requiring datacenters to comply with the Texas Water Code's mandate for complete and accurate water use surveys.
"Data centers must share the duty to protect Texas water," Abbott said.
The action reflects growing concerns about datacenters' water consumption in a state facing chronic drought conditions. Large-scale computing facilities require significant water volumes for cooling systems, raising environmental questions as more tech companies expand operations in Texas.
The governor's order empowers regulators to enforce penalties against non-compliant facilities. Datacenters operating in Texas will now face stricter oversight regarding their water usage reporting requirements.
Texas has positioned itself as a hub for tech infrastructure and cryptocurrency mining, attracting major investments from companies seeking affordable energy and land. However, the state's water scarcity has increasingly prompted officials to balance economic growth with environmental sustainability.
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