• Texas has ordered enforcement against data centres and other major water users that fail to submit required water-use information
  • Missing water data can affect state permits, while data-centre projects that fail the separate ERCOT audit can be denied interconnection

The fact

Texas Governor Greg Abbott has directed the Texas Water Development Board to enforce water-use reporting requirements against data centres and other major users. His 14 September order says some facilities appear to have failed to provide information required under the Texas Water Code.

Recipients of a TWDB water-use survey must complete and return it. Abbott's directive says failure to do so can constitute an offence, while late or missing responses can affect eligibility for permits, amendments or renewals under Chapter 11 of the Water Code. TWDB was told to refer potential criminal cases to prosecutors and notify the Texas Commission on Environmental Quality where permit eligibility may be affected.

Abbott also ordered TWDB to work with the Public Utility Commission of Texas and ERCOT on the data-centre audit he announced in August. Projects moving through ERCOT's interconnection process must provide information on water consumption, supply sources and water-efficient technologies. Abbott's office says a project that does not complete the audit must be denied interconnection. TWDB is due to report on enforcement progress by 14 October.

The assessment

Abbott's order makes the consequences of incomplete water reporting more immediate. A developer that does not provide the required information can face problems with state water permits, while failure to complete the separate ERCOT audit can stop a project from receiving a grid connection.

That means water assumptions need to be settled earlier in development. Expected consumption, the source of supply and the cooling system all have to be documented as a project moves through regulatory and electricity reviews. A site may be well advanced on land and power planning but still lose time if its water records are missing or inconsistent.

For BTW readers, water is becoming part of the same site-readiness check as electricity in Texas. The useful evidence is whether the required surveys are complete, the planned water source is documented and the project has cleared the ERCOT audit, rather than a general claim that its cooling system uses water efficiently.

What to watch

TWDB is due to update the governor by 14 October. Watch for criminal referrals, permit consequences and ERCOT audit decisions involving individual projects. Those cases will show how quickly the reporting order begins to affect development schedules and grid connections.