TEXAS — Gov. Greg Abbott is directing the Texas Water Development Board to take stronger action against data centers and other major water users that fail to comply with required water-use reporting, a move that comes as Amazon Web Services continues developing a major data center project in the Boling area of Wharton County.

Abbott announced the directive Sunday, Sept. 14, ordering the Texas Water Development Board, or TWDB, to pursue penalties for past reporting failures and enforce compliance going forward.

The governor said accurate information about water consumption is necessary for Texas to plan for future water needs as large data center developments continue expanding across the state.

Under Texas law, certain large water users are required to respond to TWDB water-use surveys. State officials have previously told lawmakers that compliance among data centers has been particularly low.

During a Texas House Natural Resources Committee hearing earlier this year, TWDB officials said 83% of surveyed data centers failed to report their water-use information for 2025. Officials said failure to respond to the required survey can constitute a misdemeanor. (Community Impact Newspaper⁠)

State orders stronger enforcement

Abbott’s latest directive instructs TWDB to pursue available enforcement options against entities that fail to comply with mandatory water reporting.

The governor’s office said the agency may also refer potential violations to the appropriate county or district attorney and notify the Texas Commission on Environmental Quality when a company could be ineligible for certain water-related permits because of its failure to comply.

The action adds another layer to Abbott’s recent efforts to increase scrutiny of Texas’ rapidly growing data center industry.

In August, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct a comprehensive audit of data centers seeking to connect to the state’s electric grid.

That audit requires projects to provide information about their projected electricity demand, water consumption, water sources, cooling technology, tax incentives, ownership and measures intended to reduce impacts on neighboring communities. Abbott said projects that fail to comply can be denied connection to the ERCOT grid. (Texas Governor’s Office⁠)

Abbott has also called for new data centers to use water-efficient technology and has said the industry should not drain water needed by surrounding communities. (Texas Governor’s Office⁠)

What it could mean for Boling

The statewide crackdown is particularly relevant in Wharton County, where Amazon Web Services is developing a large data center campus near Boling.

Water use has already been one of the major issues surrounding the local project as Amazon and contractors plan infrastructure needed to serve the development.

Amazon has previously committed to complying with Abbott’s statewide data center standards. Those standards require companies to provide information about projected water use, water sources and water-efficient cooling technology as part of the state’s review process.

During a Texas House hearing in June, an Amazon Web Services representative told lawmakers the company wants communities to view AWS as a responsible steward of water resources and said the company intends to build in locations where sufficient long-term water supplies are available. (Community Impact Newspaper⁠)

There is currently no indication in Abbott’s announcement that Amazon or the Boling project failed to comply with Texas water reporting requirements. The governor’s directive applies statewide and does not identify the Boling development as a violator.

Amazon was among several companies Abbott announced in August had committed to complying with his data center standards.

Growing state scrutiny

Abbott’s position on data centers has become increasingly restrictive during 2026 as concerns have grown about the industry’s demand for electricity and water.

In June, the governor directed state regulators to ensure data centers pay for the electrical infrastructure needed to serve their facilities rather than shifting those costs to residential customers. He also called for water-efficient cooling systems and annual reporting of electricity and water use. (Texas Governor’s Office⁠)

Then in August, Abbott ordered regulators to review data center projects before allowing them to move forward through the ERCOT interconnection process.

At the time, ERCOT was considering more than 474 gigawatts of proposed new electric demand, with data centers accounting for approximately 90% of those requests, according to the governor’s office. (Texas Governor’s Office⁠)

The latest directive now places additional emphasis on water reporting and enforcement.

TWDB has been directed to report back to Abbott on its enforcement efforts by Oct. 14, 2026.

For Wharton County, the order means water consumption, water sources and reporting surrounding the Boling data center development are likely to remain an important part of the state’s review as the project moves forward.

Wharton Post will continue following the Amazon development in Boling and any state regulatory actions affecting the project.

Source: Office of Texas Gov. Greg Abbott, Texas Water Development Board and Texas House Natural Resources Committee.

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