Texas AG probes AI data centers over water reporting compliance

Texas Attorney General Ken Paxton has launched an investigation into hundreds of data center developments to determine compliance with state water-use reporting requirements. The probe targets facilities supporting artificial intelligence expansion amid growing concerns over resource consumption in drought-prone regions. Paxton’s office stated the inquiry focuses strictly on whether developers submitted mandatory disclosures regarding groundwater and surface water withdrawals. No specific companies have been named as violators at this stage, and the investigation remains preliminary. Industry representatives note that Texas lacks uniform water metering standards for industrial users, creating potential compliance ambiguities. This action represents one of the first statewide regulatory enforcement efforts specifically linking AI infrastructure growth to environmental reporting obligations. Data center operators must now demonstrate adherence to existing statutes or face potential penalties. The outcome could establish precedents for how states regulate resource-intensive technology infrastructure under current environmental laws.