Texas governor directs review of data center water and power rules

The governor directed the Texas Public Utility Commission and the Electric Reliability Council of Texas to recommend steps that would require data centers to use water-efficient technology and to report their water and electricity consumption. The order also calls for a review of existing tax incentives for the facilities. The governor asked the agencies to submit their findings by July 17.

Texas data centers Texas currently has 217 operational data centers, with 162 under construction and 747 announced, according to data cited by The Hill. A University of Texas at Austin report from last May projected that data centers could account for up to 9 percent of the state's water use by 2040.

The governor signed the Texas Responsible AI Governance Act last June, which created reporting requirements for artificial intelligence developers. Last year the governor also barred state officials from using certain Chinese-owned AI platforms on government devices.

Industry and political reactions The Data Center Coalition said it supports efforts to ensure responsible growth. Its vice president of state policy stated that siting and operational decisions are made with local utilities and water providers. A Democratic candidate for governor said the governor's position on data centers has changed because current policies are unpopular.