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ARTICLE · 18 SEPTEMBER 2026

Texas Governor Expands Regulatory Pressure On Data Center Development

Holland & Knight
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Texas Governor Greg Abbott has escalated regulatory oversight of data center development by directing the Texas Water Development Board to enforce water use reporting requirements with potential legal consequences. The directive comes amid growing concerns about data centers' impact on rural communities and signals significant regulatory changes ahead for the industry in Texas.

United StatesEnvironment
Mike Warner
Mike Warner
Brian Thornton
Brian Thornton
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Texas Gov. Greg Abbott's latest directive signals increased regulatory pressure on data center development in the Lone Star State. On September 14, 2026, Gov. Abbott directed the Texas Water Development Board (TWDB) to "use its statutory authority to compel major water users to comply with water use reporting requirements and to impose legal consequences for past and future failure to comply with state law."

In the September 14 letter to the agency's chairwoman and its executive administrator, Abbott stated the agency's statutory duty to develop statewide water planning and that large-volume water users are legally obligated to respond to the TWDB survey with "complete and accurate information." Abbott then explicitly stated that failure by large water users such as data centers to provide complete responses may result in legal consequences, including civil penalties, ineligibility to obtain permits and even criminal charges.

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