Texas Attorney General Ken Paxton announced Thursday, Sept. 24 an investigation into hundreds of data center developments that have not responded to a required state water-use survey. Montgomery County is among 18 counties named.
The probe, separate from Gov. Greg Abbott's permit freeze announced Monday, Sept. 21, focuses on data centers that have not responded to a mandatory water use survey conducted by the Texas Water Development Board (TWDB). Montgomery County, where The Woodlands is located, is one of the counties in the initial investigation.
"We cannot sacrifice our resources, water, or energy supply, and I will continue to fight for our communities across this state," Paxton said in a statement, according to Woodlands Online.
Under Texas law, the TWDB surveys entities that use groundwater and surface water for municipal, industrial, power-generation or mining purposes. Recipients of the survey are legally required to complete it. A facility that fails to return the survey can face a Class C misdemeanor, become ineligible for TWDB financial assistance and lose eligibility for certain TCEQ water-right permits, amendments or renewals. Noncompliance can also be referred to county or district attorneys.
Response rates have been low. As of Sept. 1, about 30% of the 324 facilities the TWDB surveyed had submitted responses, according to Community Impact. In 2025, the board surveyed 329 data centers, and of 267 facilities new to its tracking, only 22.5% responded, KBTX reported.
Texas has at least 596 operating and planned data centers, according to a Sept. 2 analysis by The Texas Tribune. A University of Texas at Austin white paper found data centers could account for 3% to 9% of the state's total water use by 2040, up from less than 1% at the time of the study.
Paxton's investigation is the latest in a series of state actions targeting data-center resource use. On Sept. 14, Abbott directed the TWDB to penalize data centers that fail to comply with water-use reporting requirements. One week later, he directed the Texas Commission on Environmental Quality to halt permits sought by data centers until ERCOT completes its audit.
ERCOT officials expect to collect information on proposed data centers through November and release audit reports in early December, Community Impact reported.
Abbott also said Monday, Sept. 21, he would work with the legislature in the 2027 session, which begins in mid-January, to end financial incentives for data centers.
Closer to home, the Conroe City Council approved data center regulations in August requiring that development mitigate secondary impacts "without shifting costs to the city's taxpayers," The Real Deal reported.
