Gov. Greg Abbott calls for data center penalties if not complying with state water laws

Gov. Abbott calls for penalizing data centers not obeying water laws
Gov. Abbott called on the Texas Water Development Board to penalize data centers that don't comply with state water laws.
Brianna Willis Image
Tuesday, September 15, 2026 10:36PM

HOUSTON, Texas (KTRK) -- Gov. Greg Abbott issued another directive on data centers on Monday, calling for the Texas Water Development Board to penalize data centers that don't obey state water laws.

It's at least the third directive from Governor Abbott in the last few months, including temporarily pressing pause on data centers.

It comes after the data center debate happening across the nation and the Lone Star State, but it wasn't always the case.

SEE ALSO: State leaders look to enact more regulation when it comes to data centers in Texas

Last November, next to Google leaders and state officials, Gov. Abbott touted the state's growth, saying "Texas is the epicenter of A-I development, where companies can pair innovation with expanding energy."

In the months following, public frustration over data centers began.

"I'm not completely against data centers, but I believe data centers belong in a better place, not small rural communities," Matagorda County resident Donna Howard said.

"I've taken an approach within my position as Mayor: no to data centers," Manvel Mayor Dan Davis said.

As communities rallied against data centers in June, the Governor began to roll back.

In a letter to the public utilities commission at the time, Abbott said he also wanted to repeal other "unnecessary" incentives - and the sales tax exemptions.

By Aug. 3, Gov. Abbott announced he would halt new data center connections to the power grid until state regulators complete an audit and companies that want to build in Texas comply with his new standards.

Two weeks later, by Aug.18, Abbott said about 20 companies agreed to comply.

Then, on Monday, Gov. Abbott sent a letter to the Texas Water Development Board directing them to penalize data centers for failing to report water use.

Also, less than a month ago, on ABC's "This Week," Abbott spoke out about his recent responses to the facilities.

"No. 1, they must identify what water usage they're demanding and make clear they are not taking water from communities that need it. No. 2, they must not take power from the Texas power grid that's needed. No. 3, they must actually lower the cost of electricity for consumers. No. 4, they need to make sure that they are not disturbing neighborhoods or rural communities. These are standards that are now being universally applied by all the data centers in the state of Texas," Gov. Abbott said.

When asked whether Texas moved too fast with data centers, Abbott said the state didn't move too fast; the facilities did.

"They pop up in places that nobody ever heard of before until they started the construction. And so they had not been working in collaboration with the state. They've not been working in collaboration with local governments. And so they basically dug their own grave for the problem that's been caused for them. And that's why they got the backlash they deserve," Abbott said.

People have called on the governor to call for a special legislative session on data centers so that there's actual regulation; so far, that has not happened.

ABC13 reached out to Gov. Abbott's office about his latest directive and change in stance on data centers, but has not received an answer.

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